Refinance
Updated 04/29/2024

A refinancing, sometimes known as a “refi,” is the act of changing and altering the terms of an existing credit arrangement, most commonly a loan or mortgage. When a company or an individual decides to refinance a credit obligation, they attempt to make advantageous modifications to their interest rate, payment schedule, or other contract conditions. The borrower receives a new contract that replaces the old agreement if the loan is granted. Borrowers frequently prefer to refinance when the interest-rate environment changes significantly, resulting in possible debt-payment savings from a new arrangement.

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