What is a refinance?

A refinance is a mortgage loan secured by residential real estate that is used to pay off a homeowner’s existing mortgage, and/or to access the equity they have in their property. Homeowners choose to refinance for a number of reasons, including to: reduce their interest rate, reduce their risk with a fixed-rate loan instead of a variable-rate loan, reduce their mortgage term, access cash if they have equity in the house, and/or improve cash flow by lowering their payments.