When was the last time you thought about financing a college education? Have you sometimes dreamed about starting your own business? Perhaps there is a new car in your future, and deducting the interest from your income taxes sounds appealing? Regardless of the reason, whether it’s buying a new dream home and keeping your current residence or doing some home improvements; refinancing your mortgage may be a good solution.What does refinancing your mortgage mean? In simple terms it means that you will renegotiate your mortgage loan. When people pay down the principal on their mortgage, they build up equity and by refinancing your mortgage; you may be able to tap into that equity. This might seem overly simplified, but it is not. You do not need 40% equity to use your home to start a new business, or to help pay for your children(s) college expenses.For instance, if the market value of your home is one hundred thousand dollars and you owe only ninety thousand dollars you will have ten thousand dollars of equity in your home. A refinance of your mortgage might be available, because you have some equity in your home. You can choose to receive cash to get something that you are wanting such as college fund money, a vacation or home improvements.Sometimes when a home is purchased, the borrower is forced to take less than favorable loan terms due to credit scores. As credit scores increase over time, and equity increases as well, the borrower is often able to refinance the bad loan terms into a much better loan; usually saving thousands of dollars over the term of the loan. Does a refinance make sense for everyone? Not everyone can benefit from a refinance, but most surely can. I speak with borrowers every week that are still paying on their original loan terms, sometimes for homes they bought 10-15 years ago. They have always been informed that refinancing just adds to their debt, which is far from the truth. A properly executed refinance can save thousands in interest charges, as well as freeing up monthly expenses.Look I know someone is reading this saying what a jerk; it is easy to refinance if you have equity. Well, I am here to tell you there are only about 15% of people I speak with that cannot change something on their loan. At least 30% of those are unemployed.To find out if a refinance is the right option for you, make sure and consult with a qualified mortgage planner; he will be able to help you sort out your options and provide the proper advice for your particular situation.