Should we refi with cash out for imorovements now?

[Bert Dean]

I am 72 and my wife is 71. We owe $68K on the house we live in here in Augusta, GA---a market with sustained growth from Ft. Gordon, the NSA headquarters, the Cyber Command, and the Cyber Center for Excellence. The house is worth $202,900 as is and would be worth about $249,900 ARV.

Right now we have a 6.25% fixed-rate loan that will be paid off in 10 years. Our current equity is $134,900. If we were to refi $100K at 3.25% for 15 years, our payments would go up slightly (from $950 to $1,100) and our equity would be about $150K. (We have an IRS lien that will be paid off in four years and I am pretty sure that could be worked around.)
My wife is hell-bent on being able to "burn the mortgage" as soon as possible and is resisting refinancing with a $30K cash-out to drastically improve the functionality, curb appeal, and comfort of the home we've lived in for 35 years.

I feel we should do the refi, make the house new again, and enjoy where we live. If my position is correct, what is the best way to convince her to go along?

By the way, should the title be in her name, my name, or both?