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