Banking / Loans

  1. Home
  2. Business & Finance
  3. Banking / Loans

Refinance

By Justin Pritchard, About.com

Definition: To swap out your old loan with a more favorable loan. The new loan pays off the old loan, so you just make payments on the newer (presumably better) loan. Sometimes a borrower will borrow a little extra during refinancing to take some equity out of an asset (known as "cash out" refinancing).
Also Known As: Restructure, cash out
Examples: I refinanced my loan so that I'd pay less in interest.

Explore Banking / Loans

More from About.com

Banking / Loans

  1. Home
  2. Business & Finance
  3. Banking / Loans
  4. Loans
  5. Refinance - Definition of Refinance - Loan Glossary

©2008 About.com, a part of The New York Times Company.

All rights reserved.