If you have a lot of high interest debt, getting a cash out refinance at a higher interest rate than your current mortgage rate might make sense. With a cash out refinance, you replace your current mortgage with a new mortgage for a higher amount and get the difference in cash at closing. You use this cash to consolidate high interest debts and consolidate your debt payments into one monthly bill. Credit cards and certain other kinds of debt can have interest rates that are significantly higher than the typical interest rates on mortgages. So paying a higher interest rate on a mortgage refinance might be a good financial decision if that higher rate is still lower than the interest rates on your other debts. Look at the potential savings in interest payments, and be sure to include the closing costs you might need to pay for a refinance, before you make a decision. You should also consult a financial planner before taking such a step.