Four Ways to Benefit From a Cash-In Refinance

Gone are the days when homeowners "cashed out" on the equity of their homes through a mortgage refinance, 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 a mortgage refinance when a homeowner brings a check to closing and gets a new mortgage for a smaller amount. But unlike the cash-out option, in which the short-term benefits were tangible -- like money, a renovation or a new car -- the advantages of a cash-in refinance are not quite as obvious.