Definition
Replacing an existing mortgage with a new loan, typically to change the rate, term, or extract equity.
Example
The rate-and-term refinance cut the payment $340 monthly with a 24-month break-even.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Refinance mean in real estate?
Replacing an existing mortgage with a new loan, typically to change the rate, term, or extract equity.
How is Refinance used in practice?
The rate-and-term refinance cut the payment $340 monthly with a 24-month break-even.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.