Many people who are refinancing their mortgages want to lock in at historically low rates and funnel additional funds in order to boost the equity in their home. They are responding to underwater mortgages and prefer to avoid paying mortgage insurance and/or shorten the term of the loan so as to not be paying a mortgage in retirement. This strategy will allow them to reduce the amount of interest they pay over the long haul. Employing additional cash may not be suitable for everyone. You need to look at your cash flow situation to make sure that it makes sense. See article
