Refinancing won’t automatically increase or decrease the size of your mortgage. The outcome depends on your new loan terms. For example, if you refinance to lower your interest rate and monthly payments, you can save money in the short term but end up paying more money overall thanks to a longer loan term. However, if you refinance to repay your mortgage sooner with bigger monthly payments, then you’ll pay less in total interest. Cash-out and cash-in refinances will affect your mortgage principal, but adjustments to your interest rate or the length of your term won’t.