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Home refinancing is a great way to use equity in your home, or to get a lower monthly mortgage payment. The current economic situation causing substantial depreciation in market values on homes make it difficult to refinance in many cases, but there is still opportunity available for many home owners. Rather than shelling out funds for cosmetic improvements on your home, a down payment on a business, or another major purchase, consider a cash-out refinance option. This allows you to use the equity in your home without touching liquid reserves in your financial accounts, and it can be used for whatever purpose you choose. If you don't want to touch the equity in your home, you can opt for a simple rate-and-term refinance. This allows you to reduce your total monthly mortgage payment, and if you don't want to pay closing costs, they can be rolled into the loan. This allows you to keep your money in the bank and take advantage of today's current historically low interest rates.