The three most popular types of refinancing services are: Cash-out refinancing—this is when you ‘cash out’ a portion of your home’s equity in exchange for a bigger mortgage on different terms Cash-in refinancing—this is when you pay a sizeable amount of your mortgage in one go and switch to a new, smaller mortgage on different terms Rate-and-term refinancing—this is when you switch to a mortgage with a better interest rate and/or loan period