What does refinancing a home mean?

[NYGIRLMIAMI]

What does refinancing a home mean?

[RLW]

It means you re-work the terms of the mortgage. Usually by taking out a new mortgage to pay off the old ones and agreeing to new terms (maybe to get a lower interest rate, to lengthen the loan term which will lower the payment, or increase the mortgage amount to roll debts into the new mortgage).

[Phil M]

When most people buy a home, they are really financing or borrowing money to purchase the home. As they make payments, they are building equity by paying down the principal of the loan.A refinance is when you "re-work" the loan that you used to set the terms of the borrowed funds. Its typically done for two reasons. Either to liquidate (cash out) the equity, or to lower your monthly payment (either a lower loan value or better interst rate if your credit has improved).

[Thomas2Sell, Realtor]

Its when you obtain a brand new mortgage for the mortgage on your home. Its usually done to either get a better interest rate or to take an amount of money out of the equity in your home. Hope I helped.