Because of the "mortgage crisis" interest rates are determined by more and different criteria than they used to be. Depending on tour individual scenario you could end up with a much higher rate then the guy next door even though you both are just refinancing. Loan-to-value (LTV), credit scores, purpose of loan, and type of rate (fxd or variable) all go into determining the final rate. Most people "cash-out" to do major home improvements, but did you know that the lenders have found that "cash-out" loans are the most risky? Do you think they want to get a higher rate of return on a higher risk loan? You can be assured they do. Many times when people cash out they are also required to get private mortgage insurance (PMI) because their LTV goes up above 80%, even if the value of the property is improved by the improvements, the LTV is determined when the loan is made, not after the improvements are done. The best way to avoid these problems is to consider a "renovation" loan. They will not classify your loan as cash-out, which means a better rate, and they will allow you to use the "after improvements" value to determine LTV, which can mean lower or no PMI.