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Mortgages
Home Equity and Refinancing

What is refinancing?

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Wiki User
August 08, 2011 6:34PM

Paying off of an existing mortgage loan obligation by extending or renewing existing financing or taking on a new loan obligation under different terms.

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Wiki User
February 02, 2009 9:30AM

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.