In real estate finance, refinancing is the process of replacing or renewing an existing loan with a new loan, typically at current market interest rates. It usually involves the same borrower and may involve the same or a different lender, depending on the transaction.
Borrowers refinance to obtain more favorable terms, such as a lower interest rate, a different loan term, or a change in payment structure. Refinancing may also be used to access equity in the property or to consolidate debt.
