Although interest rates have inched up, they are still near historic lows. The mortgage pros say that generally a one percent drop in the interest rate of your loan makes it worth it. The lower payments will save money you can invest or use elsewhere. A cash out refi is the most obvious way to generate cash from your equity, but you don’t want to use that money just to finance your lifestyle. Better is to invest that money and generate income that way – income that was unavailable when tied up in your home. Or save that money by putting it in retirement accounts. Next in Part 3: HELOCs.