refinance
Replace a loan
To refinance is to replace an existing loan with a new one, typically to secure better terms—a lower interest rate, smaller monthly payments, or a shorter repayment period.
Homeowners refinance mortgages when rates drop: We refinanced and saved two hundred dollars a month.
The strategy can also extract equity: They refinanced to pay for renovations.
Estimation of worth
- equityImpartial treatment or ownership value
- closingFinal stage of something
- underwritingRisk evaluation and acceptance
- lenderOne who loans money
broker · escrow · amortization · term · adjustable-rate · fixed-rate · prepayment · origination
Formal request document
- approvalFavorable opinion given
- underwritingRisk evaluation and acceptance
- closing costsFees finalizing property purchase
- origination feeLender's upfront service cost
credit check · credit score · credit report · documentation · verification · appraisal · title search · loan estimate
Combining into unified whole
- restructuringRearranging an existing framework
- balanceSteadiness or amount owed
- repaymentGiving back what's owed
- liabilitiesAmounts owed to others
default · delinquency · bankruptcy · cash-out · payoff · debt-to-income ratio · outstanding balance · settlement
Gradual debt reduction schedule
- loan termDuration of borrowed money
- monthly paymentRecurring scheduled remittance
- repayment scheduleTimetable for settling debt
- fixed paymentPredetermined sum owed
duration · principal · interest · maturity · balloon payment · prepayment penalty · grace period
Yearly borrowing cost
- adjustableAble to be changed
- fixedRestored or immovable
- percentageProportion out of hundred
- primeReadying for action
spread · basis points · rate lock · discount rate · variable · introductory rate · teaser rate · market rate
appraisal
Estimation of worth
- equityImpartial treatment or ownership value
- closingFinal stage of something
- underwritingRisk evaluation and acceptance
lender · broker · escrow · amortization · term · adjustable-rate · fixed-rate · prepayment · origination · loan-to-value
application
Formal request document
- approvalFavorable opinion given
- underwritingRisk evaluation and acceptance
- closing costsFees finalizing property purchase
origination fee · credit check · credit score · credit report · documentation · verification · appraisal · title search · loan estimate · disclosure
consolidation
Combining into unified whole
- restructuringRearranging an existing framework
- balanceSteadiness or amount owed
- repaymentGiving back what's owed
liabilities · default · delinquency · bankruptcy · cash-out · payoff · debt-to-income ratio · outstanding balance · settlement · obligation
amortization
Gradual debt reduction schedule
- loan termDuration of borrowed money
- monthly paymentRecurring scheduled remittance
- repayment scheduleTimetable for settling debt
fixed payment · duration · principal · interest · maturity · balloon payment · prepayment penalty · grace period
APR
Yearly borrowing cost
- adjustableAble to be changed
- fixedRestored or immovable
- percentageProportion out of hundred
prime · spread · basis points · rate lock · discount rate · variable · introductory rate · teaser rate · market rate · floor
- credit termsloans, installment loan, credit limits, monthly payment, credit cards
- payday loanspayday loan, payday loans, cash advance, rollover, fee
- loansloan, loans, lend, borrow, auto loans
- personal financesavings, income, credit, investments, bills
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- auto loansauto loan, car loan, loan amount, loan term, monthly payment
- refinance loanNew loan replaces old
- debt refinancingReplacing existing obligation with new terms
- refinancing optionsLoan replacement possibilities