Sunday, July 19, 2009

Definition of Refinancing

Refinancing is renew an debt obligation.
Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms. The most common consumer refinancing is for a home mortgage.
A way of obtaining a better interest rate, lower monthly payments or to borrow cash on the equity in a property that has built up on a loan. A second loan is taken out to pay off the first, higher-rate loan.

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