Cash-In Refinance: Lower Your Mortgage Balance, Rates & PMI

When most people think about refinancing, they picture taking money out of their home equity with a Cash-Out Refinance. But there’s another option that works in the opposite way—called a Cash-In Refinance.

With a Cash-In Refinance, you bring extra money to closing to pay down your loan balance. This strategy can lower your loan-to-value (LTV) ratio, reduce monthly payments, help you eliminate private mortgage insurance (PMI), or even qualify for a lower interest rate.

How Does a Cash-In Refinance Work?

Here’s a simple example:

Your current mortgage balance = $250,000
Your home value = $300,000
LTV = 83% (too high for best rates, still requires PMI)

If you bring $30,000 in cash to closing, your new balance drops to $220,000.

New LTV = 73%
Result: You now qualify for better refinance rates and remove PMI.

Key Benefits of a Cash-In Refinance

Benefits of a Cash-In Refinance

1. Eliminate Private Mortgage Insurance (PMI)

If your LTV is above 80%, you’re probably paying PMI. A Cash-In Refinance can push your LTV below 80% and wipe out PMI—saving hundreds per month.

2. Qualify for Lower Interest Rates

Lenders reward borrowers with stronger equity. By reducing your balance, you may unlock better rates.

3. Build Equity Faster

Paying cash upfront means you own a larger share of your home immediately.

4. Lower Monthly Payments

With a smaller balance, your monthly mortgage payments shrink—improving your cash flow.

5. Shorten Your Loan Term

Some homeowners use this strategy to refinance into a 15-year loan, saving thousands in interest over time.

Who Should Consider a Cash-In Refinance?

This program may be right for you if:

You have cash savings or investments you want to put to work.
You want to remove PMI as soon as possible.
You were once underwater on your mortgage and want to regain equity.
You want to refinance but don’t qualify with your current LTV.
You plan to stay in your home long-term.

Cash-In vs. Cash-Out Refinance

Feature	Cash-In Refinance	Cash-Out Refinance
Goal	Pay balance down	Take equity out
Cash Flow	You bring cash	You receive cash
LTV Impact	Decreases	Increases
Best For	Lower rates, cancel PMI, build equity	Renovations, debt payoff, large expenses

Risks and Considerations

While powerful, a Cash-In Refinance isn’t right for everyone:

Liquidity Risk – You’ll have less emergency savings after paying in cash.
Opportunity Cost – Money tied in your home may have earned higher returns elsewhere.
Closing Costs – Like all refinances, you’ll still pay lender and third-party fees.

Why Choose Loan Factory for Your Refinance?

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At Loan Factory, we simplify refinancing so you get the most out of your money:

Compare rates from 240+ wholesale lenders instantly.
Best Price Guarantee: If we can’t beat a competitor’s offer, we’ll pay you $1,000 check (Terms And Conditions)
No junk fees or hidden costs.
AI-powered platform (MOSO) for faster pre-approvals and real-time loan tracking.

See if a Cash-In Refinance makes sense for you today.
Start your free quote with Loan Factory