Refinancing your home to pull equity out can be a sensible move. Whether you want to do this really depends on where your current rate is at and how much equity you intend on pulling out. If this seems like something you think you need to do, be sure to check out our section below that discusses situations that don’t necessarily require a refinance.
The situations that usually fit into this category are when you are looking to consolidate a large amount of debt and the interest rate you have on your existing mortgage is high. The benefit of doing this is usually that you can reduce the carrying cost on the debt, lower the rate to service the debt, and turn the interest you pay on the debt into a tax deductible expense.