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Refinance

Replacing your existing mortgage with a new loan, usually to lower the rate or change the term.

Why it matters

A rate-and-term refinance lowers your rate without pulling equity. A cash-out refinance replaces the loan with a larger one and gives you the difference in cash. Refinancing has closing costs, so a break-even period governs whether it saves money.

See also

Educational only — not financial, tax, or legal advice.