Another way to make a refinance work is for you is to refinance for more than the balance remaining on your old mortgage. With today’s low rates, you can tap into your equity without increasing your monthly payment.

The best use for the extra cash is to pay off any higher rate loans you may have such as a car loan or credit cards, for example. This would improve your monthly cash flow. Of course, all the extra cash needn’t go for paying off debt. There is always those home improvement projects.