When a family who owns their own home meets a financial crisis, typically the first thought is about refinancing the home. An option for a family with a mortgage that they feel they will never be able to afford is a cash out refinance. The cash out refinance allows the family to refinance their home completely, the family pays off their old mortgage which is usually lower than the value of the home and pockets the difference to pay bills or take a vacation, whatever they want. Depending on the credit of the homeowner the interest rates are usually lower as well, however if their credit is poor then a higher rate will apply. If you are considering a cash out refinance option, make sure you are doing it for the right reasons.