Refinancing is a way to reduce the interest rate on your loan. If interest rates have decreased since you last borrowed money for your home, you may think about refinancing. There are other common reasons to refinance as well, like paying off a large lump sum payment, changing from a loan with an adjustable interest rate to a loan with a fixed interest rate, or getting cash from the equity in your home (called a cash-out). Some reasons people cash out equity include making home improvements, saving for education, and combining debts into one payment.