Before any refinance always be sure that it will benefit your situation and help you achieve your goals.

Many people will refinance with a cash-out refinance to simply invest the money and have a larger tax deduction at income tax time. This way there is a good chance that you can make roughly 10+ percent off of the money being taken out of the equity in your home from your cash out refinance, and you are paying a considerably lower interest rate on your mortgage than what you are making from your investment. In addition, you get a bigger mortgage interest tax deduction when preparing your income taxes each year. This is a very common investing strategy with interest rates still being so low.

If you have a large amount of high interest credit card debt, then it may be beneficial to you to refinance it into your mortgage. The interest on your mortgage is tax deductible, where as the interest on your credit cards is not. The tax advantages alone would be worth the refinance, let alone the monthly saving from your credit card debt.