If you live in Arizona and are looking at the "cash out" refi option for your AZ Home Loan, you should consider the pros and cons before you make a decision.
There is a higher rate penalty to the cash out refi (because of the cash out part) however, this option is widely considered to be one of the best ways to borrow money. It's hard to find a better rate when you need the cash. If this is your first mortgage refinance, then you can also claim the interest as a tax deduction (this isn't available for second mortgages unless the money is used for home improvements).
If you refi your first mortgage, it will cost more than obtaining a new line of credit, however, the additional cost difference can be consolidated into the new refi, so you won't have any out of pocket expenditures.
Then, a home appraisal and your AZ Title insurance are the only items that you will have out-of-pocket expenditures for.
Remember that there is a three day cancellation policy when you have an Arizona Refinance. During this 3-day period, make sure and re-review all of your papers and be certain in your decision. Even though you've signed the papers, you still have three days to reconsider.
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