Investor Glossary-refinancingInvestor Glossary-refinancingInvestor Glossary-refinancingInvestor Glossary-refinancingInsightful 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

Refinancing

The HTML to link to this page
 

Refinancing is the act of restructuring a debt or replacing it with new debt, having different terms. Borrower motivations for refinancing vary. The objective of refinancing could be to lower monthly debt payments, to reduce interest expense, or perhaps to increase borrowing. Refinancing is routine with residential mortgages, but can occur with any type of debt and debtor. A mortgage that is a refinancing of an existing mortgage is sometimes called a refi mortgage, or simply refi, as opposed to a purchase mortgage. Mortgage refinancing is highly cyclical, tending to rise when interest rates are falling. In a mortgage refinancing transaction, the term cash out refinancing describes a situation when a homeowner uses accumulated home equity as collateral for additional principal. Typically, refinancing a mortgage has significant transaction costs. An exception is what is called streamlined refinancing, when the borrower slightly changes terms with the same lender, often receiving only a lower rate. The typical streamlined refinancing dispenses with much of the documentation and closing costs associated with a typical mortgage refinancing transaction.



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


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