Why Refi?

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Ideally, refinancing makes sense only if you use the extra cash to add security rather than risk to your retirement assets. In a less happy scenario, it may also make sense if your other debts are so out of control that consolidating them into one lower-interest loan is the only way to crawl out from under. But, financial planners warn, if you're using your home to reduce debt, don't rack up more debt once everything is paid off.

For Norm Bour, the most recent refinancing with cash back has not only cut his monthly mortgage payments but also allowed him to trim the interest rate on three other loans, freeing a total of $1,500 a month. He intends to put that $1,500 toward principal, paying off his house by the time he's 62. "It's about having a plan," he says, "and with that comes peace of mind."