In some cases, maintaining some…
…cash reserve fund is more important than lowering the monthly payment. If you have significant equity on your home and if you are uncertain about your future income, refinancing to cash out is not a bad option. This is not a long term solution, but it buys you time to correct the problem. Remember, when you need the money most (such as the cases of illness or job loss), it usually is very difficult to borrow money. If you are in this situation, refinance to cash out before the unfortunate event occurs.
