Much of the demand for mortgage refinancing has dropped off in recent months as rates have trended slightly higher. But one refi category that lets homeowners draw on their equity remains relatively strong.

“Many owners have built up a lot of equity in the last five years and now they want to leverage that equity,” says Daren Blomquist, a senior vice president at Attom Data Solutions (attomdata.com), which tracks real estate markets throughout the country.

Though few owners are refinancing to trade one mortgage for another at a lower interest rate, because they probably already have a low rate, more are doing a refi to liberate funds for other purposes.

“One major reason for a ‘cash out’ refi is to access funds for remodeling,” according to Blomquist. He notes that an increasing number of baby boomers wish to “age in place” rather than downsize to another property. But that often means costly renovations, like adding a first-floor master suite to a two-story house.

Besides those who want to refinance to remodel, many older owners are refinancing (or tapping equity through a home equity line of credit) to help grandchildren with college expenses. Others tap equity for travel or for money to buy an income-producing rental property.

In most ways, applying for a cash-out refi is no different than applying for a plain vanilla refi or a mortgage to purchase a home. Here are a few pointers:

-- Update yourself on mortgage basics before you apply.

Many older mortgage applicants need a refresher on mortgages. Because they’re rusty on the topic, they hesitate to ask questions, says Sid Davis, the author of several books on real estate.

But as Davis says, the main concepts of mortgage lending aren’t hard to grasp if you take a little time to do so. You can do a quick study of mortgage essentials by visiting the website of the U.S. Department of Housing and Urban Development (hud.gov).

In addition, he suggests you pick up a book on mortgages, though anything published on the topic more than a year or two ago is likely out of date.

“When it comes to mortgages, the turf is changing so quickly,” he says.

-- Look for a lender who will meet you face-to-face.

Most lenders are entirely comfortable taking refi applications from homeowners they’ve never met. On a technical level, there’s no reason your lender can’t process your application by phone, text, email, fax or overnight delivery, says Marty Qualls, who makes mortgages for several large banks.

“But you’ll have a lot more credibility with your lender if you go into his office,” says Qualls, who’s been in the mortgage business since 1992.

Meeting face-to-face is an especially good idea for borrowers who anticipate special challenges to loan approval. Such applicants include the self-employed, those with credit blemishes and those with relatively limited assets -- like small savings accounts.

Qualls acknowledges that many lenders favor the efficiency of handling nearly all their business remotely. Still, he says they often give preferential treatment to those who take the time to visit their office.

“An in-person application could even mean you get a slightly better mortgage rate,” he says.

-- Reply promptly to your lender’s request for documents.

Dale Robyn Siegel, an attorney and mortgage broker, says that compared with the pre-recessionary period, mortgage officers must now work more diligently than before to assemble the files they need to meet the exacting requirements of their underwriters (who have the final say on mortgage approval). Hence, they’re grateful to applicants who help them obtain documents without nagging.

“Good preparation is a big plus,” says Siegel, author of “The New Rules for Mortgages.”

Ideal loan applicants arrive at their initial appointment with all the primary documents they’ll need -- including recent pay stubs, W-2s and bank statements.

Mortgage officers are also pleased when loan applicants review their credit reports in advance of applying. Under federal law, you're entitled each year to one free credit report from the three large credit bureaus: Equifax, Experian and TransUnion. Just go to this website: annualcreditreport.com.

You may also want to access your credit scores. Such scores -- which draw on data from the credit bureaus--provide lenders with a quantitative measure of a person's credit risk. Most lenders use FICO scores, pioneered by the Fair Isaac Corp, though other rival scores are also now in use.

Usually you need to pay a fee to obtain your credit scores. One approach is to buy these through the Fair Isaac website: myfico.com. You can also receive credit scores through the credit bureaus. FICO scores range from 300 to 850.

-- Remain in close touch with your lender until the deal is done.

Given recent problems with credit that have exposed record numbers of consumers to potential identity theft, some refi applicants are now facing more complications than before to get loan approval.

Davis says lenders appreciate applicants who reply promptly to their requests for information and communicate often while their applications are under review.

“Whether you stay in touch by text, phone or email, connecting with your lender nearly every day is a great idea,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Kai Anderson is just 47, but she’s already amassed enough income-producing real estate to retire from her government job as early as age 60. Rents collected on the six townhouses she owns -- coupled with retirement savings -- will give her the freedom to pursue any interests she fancies in her post-work years.

Anderson is one of many Americans who count on real estate to play a major role in their future. Decisions on the purchase and sale of property can have a huge impact on quality of life in retirement.

“Don’t take your real estate planning lightly. Making the right choices is crucially important to your financial future,” says Sid Davis, a veteran real estate broker and the author of multiple books on buying, selling and investing in property.

One real estate decision with especially momentous implications for retirees involves buying property abroad or in a faraway U.S. city. Financial planners caution that such a long-distance move can entail many unforeseen consequences.

“You have to look behind the curtain before making any big life decision or move,” says Keith Weber, a certified financial planner and author of “Rethinking Retirement.”

What’s the best way to play your real estate cards as you head into retirement? Davis says there are multiple good answers to that question. Some homeowners tighten their budgets and pay off a mortgage early. Others refinance any mortgage debt they have in order to lengthen the term and thereby cut their monthly living expenses in advance of retirement.

Of course, some homeowners must tap equity just to survive after they’ve ended their careers. That could mean they may have to sell their property to afford such basics as food, clothing and medicine. Alternatively, some income-short retirees take on a “reverse mortgage.” This has the potential to liberate them from principal and interest payments in their senior years.

Although many are uncomfortable with the idea of becoming landlords, Anderson is an exception to that rule. She recommends taking a systematic approach to acquiring and maintaining rental properties, and offers advice on her tactics in a new book titled: “Retire on Real Estate: Building Rental Income for a Safe and Secure Retirement.”

Among the pointers in her book, Anderson offers suggestions on handling the upkeep demands of rental units. She suggests landlords create an enduring relationship with a skillful and trustworthy contractor who can deal directly with tenants without their intervention.

Perhaps it’s not possible or practical for you to buy rental property to help fund your retirement. Even so, if you’re a homeowner, you may be able to generate extra income by renting out a spare bedroom or two in the place where you already live, a plan Anderson says works well for many empty nesters.

Here are a few pointers for those pondering their future real estate options:

-- Make sure you thoroughly discuss your real estate plans with your partner.

Dorian Mintzer, a psychologist who specializes in retirement and relationship coaching, recommends that soon-to-retire couples spend several hours discussing their views on the ideal retirement arrangements.

“The idea is to reach a shared vision through creative compromise,” says Mintzer, co-author of “The Couples Retirement Puzzle: 10 Must-Have Conversations for Transitioning to the Second Half of Life.”

She says couples who head into retirement without reaching a common vision could be at risk for an eventual breakup.

-- Make sure you factor financial concerns into your planning.

Although many people approaching retirement think the most prudent choice is to sell a large house in favor of a smaller property, a minority view retirement as their last opportunity to buy or build a larger or more sumptuous place.

Ernie Zelinski, author of “How to Retire Wild, Happy & Free,” points to research showing that retired people who live in spacious homes are no happier than those who reside in small places.

“People say, ‘This is my chance to buy that dream house I’ve always wanted.’ That causes them to buy a far bigger place than they really need for retirement,” he says.

Zelinski recommends that retirees make a realistic evaluation of their housing needs, as well as their budget limitations, before committing to the purchase of a large property that comes with major utility expenses and maintenance obligations.

-- Don’t assume you’ll save on living costs by retiring far away.

It can seem financially wise to sell one’s home in a major metropolitan area to move to a rural town that claims a significantly lower cost of living. But Davis says this could be false economy unless you think through all the financial implications.

For example, if your grown children and grandchildren live all over the U.S. and you wish to see them often, how much would it cost for flights in and out of your rural airport?

Another factor to consider involves convenient access to quality health care. During their senior years, many need consultations with high-level medical specialists or surgery at a major hospital.

When visiting a new retirement location, Davis recommends you bring along a checklist to ensure the community would meet your requirements. Among other factors, check out the local transportation facilities, including public transit, and access to cultural and entertainment venues.

“It’s not only your money, but also your contentment at stake when you make any real estate purchase, sale or investment for your latter years,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Are you intending to sell a home in a neighborhood where buyers have long outnumbered sellers, and properties have flown off the market in recent years? If so, you could be at risk for overconfidence in a changing market.

Lawrence Yun, the chief economist for the National Association of Realtors (realtor.org), says “supply and affordability headwinds” are now beginning to impact overall sales.

“Demand continues to overwhelm supply in most of the country,” says Yun, noting that in the face of price gains, some potential purchasers are beginning to back off, if only temporarily.

Real estate analysts aren’t issuing dire warnings. But they say that, as always, sellers should contain their expectations within reasonable levels, making sure they don’t overprice their place.

“It’s never wise to come out of the gate with a price that’s too aggressive. Almost inevitably, sellers who are greedy fall short in the end,” says Eric Tyson, a personal finance expert and co-author of “House Selling for Dummies.”

Tyson cites another time-honored piece of advice for sellers: do plenty of homework when selecting the right listing agent.

How can you screen agents to find the best one for your listing? Hiring experts stress the importance of one-on-one interviews.

Jodi R.R. Smith, a human resources trainer who heads her own consulting firm (mannersmith.com), says, “It’s worth the time to find a fabulous person to sell your place,” as your home is most likely your greatest asset.

To begin, she recommends you create a preliminary list of five to 10 agents who are recommended by people you know. Then pre-screen each with a five-minute phone interview.

“If you don’t (have a rapport), you don’t want to waste your time -- or their time -- having them come to your house,” Smith says.

Telephone pre-screening should cut your list of potential agents to three or four, all of whom Smith recommends you invite to your home for in-person interviews.

Here are a few pointers on interviewing:

-- Ask open-ended questions of your candidates.

As the founder of MarketStar, a large sales and marketing company, Alan Hall has interviewed hundreds of job applicants. Experience has taught him that open-ended questions elicit the most revealing answers.

“For example, ask them about a past failure they had in their real estate career and how they handled it. They should tell you how they turned failure into a learning experience. If they stumble in response, that’s not a good sign,” Hall says.

-- Seek to quantify your agent’s past performance.

Smith recommends you ask all the candidates for data on the homes they’ve sold in the last six months. In each case, what percentage of the list price did the homeowners obtain? And how many days did the property sit on the market before it sold?

“You need to know how well each candidate is doing statistically and how they compare with other agents in the area. Fortunately, real estate ... (uses) a lot of metrics to measure success,” Smith says.

-- Look for good manners as an indicator of competence.

Smith says you should consider as listing agents only those who are candid in assessing the changes needed to make your property sell for its full market value. But you don’t want someone who is overly blunt.

She recommends you tell all the agents how much money you have for pre-sale upgrades and then ask them to give you a priority list.

“Ask for their gut reactions and whether, for example, you would be better off spending the money you have to plant flowers beside your front entrance or to paint your bathroom. The right agent should have good suggestions that fit in your budget,” Smith says.

-- Weed out agents who don’t take your sale seriously.

Given that you have much at stake when selling a home, Hall says you need to make sure the listing agent you engage will treat your listing seriously. How can you tell which agents might give your property less than a 100 percent effort? Often, there are red flags, he says.

“One bad sign is if the agent doesn’t arrive on time for your listing appointment. You don’t want to hear excuses, unless it’s something they couldn’t help, like a tire blowing out on the road,” Hall says.

-- Avoid a listing agent who is green.

Cathleen Faerber, an executive recruiter for the Wellesley Group, recalls a “disastrous mistake” she made in the past when, without an interview, she hired a friend to list her house for sale.

“This person, who was my neighbor, was a newbie to real estate. She clearly lacked the background to do the job. During the six months she had my listing, she failed to advertise my house. The result was zero traffic and the loss of a lot of prime selling time,” Faerber remembers.

“Ask them to walk you through the methodology they use to market homes and how they’ve met challenges. Past performance is always an indicator of future performance,” she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)