What is refinancing?
Paying off of an existing mortgage loan obligation by extending or renewing existing financing or taking on a new loan obligation under different terms.
Refinancing a loan means that you are essentially paying off your mortgage with a new loan. Refinancing is often used to change your loan from an adjustable to a fixed rate and can be a way to lower your monthly payments or take cash out of your home's equity. The process of refinancing is very similar to getting your original mortgage.