Cash-In Refinancing on the Rise: What's in It for You?

Cash-in refinances on the rise
Cash-in refinances on the rise

Gone are the days when homeowners "cashed out" on the equity of their homes through refinancing, and used the money to pay off other bills, renovate a kitchen, or jet to Bora Bora. Stringent, post-housing-boom lending policies mean a gain in popularity for the complete opposite of the cash-out refi -- the cash-in refinance.

A cash-in refinance, or paying down the principal of a loan, is when a homeowner brings a check to closing and gets a new mortgage for a smaller amount. Last year, this type of refinancing climbed. In the last three months of 2009, the cash-in refi accounted for one-third of Freddie Mac-owned loans.

To find out the advantages of a cash-in refinancing, HousingWatch talked to some real estate experts for tips on why this might be the route some homeowners should take....