Refinancing with a new loan doesn't mean you have to give up all the money you've paid towards your old mortgage. With each payment, you build up a certain amount of equity in a property-which is the amount you've paid on the principal balance of the loan.

For example, if you have a $100,000 loan at 8 percent, you would build about $2,800 worth of equity in the first 3 years. Thus, if you refinanced, the new loan would only amount to $97,200.