You might have chosen to remain in your home rather than move. But that decision comes with the decision to access some cash to remodel. The equity in your home could serve as a vehicle to do just that, and a cash-out refinance might be the answer.

The Top 4 "thumbs-up" of cash-out refinancing

• When using these funds to pay off credit cards or other high interest debts, you'll improve your cash flow by merging all the debt into one payment. Though the payment is larger, it will most likely be less than the total of all the other bills.
• With fewer bills carrying balances due, you will most likely improve your credit score.
• You will realize the tax benefits of the deductible home mortgage interest.
• You can use it for whatever you wish. There is a growing trend where people are using some of the money as "emergency funds" so they have it readily available.

The Top 4 "thumbs-down" of cash-out refinance

• This is a new mortgage, so you will have to pay fees ranging from hundreds to thousands of dollars in closing costs.
• If you borrow to the full value of your home, there is risk of being upside down if you want to sell within a few years.
• You might extend the length of time you'll be making your mortgage payments, possibly going back to the full 30-year loan.
• You might find yourself in worse shape. If you have difficulty managing money, you might find yourself returning to the credit card habit. Then you'll have a higher house payment, plus new debit on the credit cards you just paid off. This will place you in a more difficult place than you were prior to the refinance.

When you're ready to tap into the equity of your home, consult with a professional, dependable mortgage broker. He or she will be able to help you decide, depending on your specific financial situation and goals, which type of loan will best serve your needs.