When a homeowner decides to make a lump-sum payment on their mortgage loan during a refinance period, it is called a cash-in refinance. This is a type of cash-in refinance. Many homeowners use this refinancing opportunity to replace their current mortgage with a smaller principal balance. In a way, a cash-in refinance is similar to a mortgage recast, where lenders will change the mortgage loan terms after the homeowner pays the initial lump sum.