Refinancing properties in a rising interest rate market

[Leanne Hunt]

I often read that it is a good idea to refinance a property as soon as possible to release money for another deal. This makes sense when the new loan can be obtained at the same or a lower interest rate, but when interest rates have gone up it is surely inadvisable?  Rates are on the rise where I live, and although I have seen huge appreciation in my properties over the last 10 years, meaning I could refinance to release a lot of money, I would be repaying the loan at a much higher rate.  This makes it risky in terms of vacancies because I would have to meet higher mortgage payments without income, and I don't want to have to do that.  Any thoughts from experienced investors who have faced this challenge?