<prompt> Human: My wife and I are upper 20slower 30s with one child.3 years ago we purchased a house for 129k, the interest rate is fixed at 4.49 we still owe 112k toward the principle. I have been working toward my dream job where I will earn more money but it has been tight financially. Currently we are within a few hundred of breaking even each month. I currently make under 30k, and my wife makes about the same. We try to keep 10k in the bank for emergencies and we have been floating around that number for months. We have no debts besides the house. This is not the reason for my post, just giving some context.I received a call from my mortgage lender the other day. It seems my house value has gone up to about 154k. They are offering me a refinance. It will start the 30 years over again, the new rate will be fixed at 4.375, and I will get 13,800 cash back at closing. my current rate escrow included is 870 and the new rate would be 917. My wife and I have already spoken and we would not do anything with the cash out money till I am earning more, it would just give us more cushion, than as I earn more money it would allow for homelife improvements ie a deck or pregnancy without having to build up finances as long.We were in the habit of paying extra each month to the principle, but recently that hasnt been an option. I know that the first few years are the heaviest for interest payments and I see how my lender would benefit from this, but I also see how this could give us some breathing room till I am making more in case something unexpected comes along car breaks, pregnancy. What do you think?TL:DROLD NEW4.49 4.37527 yrs left 30 yrs left0 money 13k money870 month 917 monthThanks for the help!  <response>: It sounds like you will trading a tenuous situation for a situation with more debt, a longer time until you are out of debt, and a higher monthly payment, in return for doubling your emergency fund.In your position, I MIGHT look at a no cost to me refinance to see if I can get a lower rate, but the money I save with the lower rate would have to break even within about two years or less. For example, you have a 112,000 loan right now, at 4.49, so you are paying ABOUT 5,028 a year in interest. A 4.375 loan would be 4,900 a year in interest. Refinancing at those rates would save you 128 a year, and thus your closing costs that will get folded into the new loan would have to be about 250 or less, which is quite unlikely. It seems the best answer might be to not pay any extra on your loan until you have your emergency fund up where you want it. Good luck! 