Refinancing is when you get a new mortgage to replace the original mortgage. This is usually done to obtain a better interest term and rate. However, there may be other circumstances when this is necessary such as in a divorce or separation situation whereas in the terms of the divorce or separation you may be required to refinance your home and remove the ex-spouse or partner from the loan in order to keep or stay in the home. Others often times use a cash-out refinance to pay off other bills or take a vacation. Considerations for taxes are not the same in the case of a cash-out refi vs. a HELOC. Please consult your tax advisor for more information related to your specific circumstances.