30yr REFI fixed, Cash in an account or reduce debt?

[Ian McKay]

Hi

Looking to do a refi on a "primary" residence possibly pull out equity to pay off debt and lower the interst rate from 5% to hopefully below 4% via credit union.

Is it better to have say 10K in an account or use the 10K to pay off some of the debt prior to applying for a refi assuming good credit? 

Thanks 

Ian