A few years ago everybody wanted to take cash out of their homes. A house was not a place to live, but a place to store equity in case you needed cash - kind of like an ATM.
Now "cash-out" refinancing is out, while "cash-in" refinancing heats up. Instead of getting a check when you refinance, you pump excess cash into your house.
Why would you do this? It may be the only way to refinance or to get the best deal. Lenders are more willing to work on loans with a low loan to value ratio, and cash-in refinancing helps. You can also lower interest costs over the life of your loan. With savings and CD rates so low, some have chosen to put safe money into home equity.
See how a new loan works by calculating loan scenarios. Figure out how interest costs and monthly payments would change if you do a cash-in refinance.
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