Refinance

Refinancing is the process of replacing an existing loan with a new one, typically to obtain better terms such as a lower interest rate, reduced monthly payments, or a different loan duration. For example, homeowners often refinance their mortgages to take advantage of favorable market conditions, access equity, or switch from an adjustable-rate to a fixed-rate mortgage. The process involves applying for a new loan, undergoing credit checks, and paying closing costs. While refinancing can offer financial benefits, it requires careful consideration of fees and potential long-term impacts on the overall cost of the loan.