I didn't need the cash out, but it adds a bit of a safety margin. Liquid cash gives you optionality. For example, if things don't work out as I hope, I could us

I didn't need the cash out, but it adds a bit of a safety margin. Liquid cash gives you optionality. For example, if things don't work out as I hope, I could use that cash to try to buy another small business, or something like that. It would have been harder (or impossible) to refinance without a steady paycheck, so I planned for that while I still had the job. My mortgage interest rate is 4% and I've put the cash I've withdrawn in short term US treasures at 2.5%, so that cash is only costing me 1.5%. Another reason I did a refinance was that when I bought my house I had only been in the US for 2.5 years and my credit score wasn't great (in the 600s IIRC). I could only get an 5/1 ARM loan that was about to start becoming variable at a higher interest rate.