Investor Glossary-mortgage refinanceInvestor Glossary-mortgage refinanceInvestor Glossary-mortgage refinanceInvestor Glossary-mortgage refinanceInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Mortgage Refinance

The HTML to link to this page
 

A mortgage refinance occurs when a borrower pays down an existing loan (mortgage) using the proceeds from a new loan. People often seek a mortgage refinance in order to secure a lower interest rate, to lower their monthly payment or to obtain cash out of their accumulated home equity. Another important reason for a mortgage refinance is the ability to change from an adjustable-rate to a fixed-rate. A mortgage refinance is usually worthwhile when the savings in interest outweigh the fees associated with the refinancing. If the reverse occurs, a mortgage refinance may not be beneficial. Prepayment fees attached to an existing loan may cause a mortgage refinance to be less favorable. A mortgage refinance can also cause an extension in the life of a loan and/or increase existing debt. Factors to consider in a mortgage refinance include up-front fees, pre-payment penalties and ongoing variable costs.



Rate this mortgage refinance definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use