Hello, yes it makes sense to do a cash-out refinance and pull the $10,000 out as long as you have sufficient equity. You can typically do a cash-out up to 80% of the appraised value. I suggest doing so because rates on a 15-year or 10-year term are between 2.75-3%. It makes sense to put all of your money in this case on a low fixed-rate mortgage instead of doing a second mortgage or home equity line of credit. Second liens are typically higher interest rates or have adjustable rates that are interest only. I hope that helps you make an informed decision.