The process of paying off and replacing an old loan with a new mortgage. Borrowers usually choose to refinance a mortgage to get a lower interest rate, lower their monthly payments, avoid a balloon payment or to take cash out of their equity. Click here to compare refinance loan options online.
a very serious thing and something that you shouldn't get into lightly
The borrower pays off an old loan with a new loan. If interest rates declines such that the savings from switching to a loan with lower interest rate outweigh the costs of securing a new loan at lower interest rate, then refinancing may be advisable.
A mortgage refinance allows a homeowner to get a new loan to pay off their current mortgage loan.
A refinanced mortgage is one in which a borrower pays off an old loan with a new loan. People who refinance a mortgage usually do so to get a lower interest rate, lower their payments or to take cash out of their equity.
Situation whereby a borrower acquires a new loan | mortgage in order to cover an existing one. Reasons why borrowers take this step is to reduce their interests rates and | or liquidate cash from their home equity.