Refinancing, or short-term refinancing, refers to the process of reviewing and replacing the terms of an existing loan agreement, usually with respect to a loan or mortgage. When a business or individual decides to refinance its debt obligation, it seeks to effectively change the interest rate, payment schedule, and / or other terms set forth in the agreement. If approved, the borrower receives a new contract that replaces the original.
- Refinancing occurs when the current terms of the loan, such as interest rates, payment schedules, or other terms, are examined.
- When interest rates fall, borrowers are reimbursed.
- Refinancing involves reviewing the credit status and payments of individuals or companies.
- Consumer loans that are often considered for refinancing include mortgages, auto loans, and student loans.
You can define Refinance as, When new loans help pay off existing debts. Reasons for refinancing are: Extending the original loan for a longer period of time, lowering the fee or interest rate, switching the bank, or switching from fixed to variable loans.
Replace a loan, such as a mortgage, with another loan with better interest rates or other more favorable terms.
Meanings of Refinance
Usually with a new loan with a lower interest rate, refinancing (multiple).
Sentences of Refinance
The company had to refinance on 20 20 billion in guarantees and bonds