refinances
Gets new mortgage
Refinances means to replace an existing loan with a new one, typically to secure better terms—a lower interest rate, reduced monthly payments, or different loan duration.
Most commonly applied to mortgages and car loans: They refinanced their house when rates dropped.
The borrower pays off the original debt with proceeds from the new loan.
Borrowed money repaid later
- lenderOne who loans money
- borrowerOne who takes temporarily
- homeownerProperty title holder
- equityImpartial treatment or ownership value
appraisal · closing · origination · underwriting · amortization · escrow · principal · title
Combining multiple balances owed
- cash-outConvert assets to currency
- rate reductionDecrease in charges
Costs for services
- closing costsFees finalizing property purchase
- appraisal feeCharge for professional valuation
- origination feeLender's upfront service cost
- title insuranceCoverage against ownership defects
points · prepayment penalty · break-even · out-of-pocket · no-cost · rolling in · attorney fees
Yearly borrowing cost
- fixedRestored or immovable
- variableProne to fluctuation
- adjustableAble to be changed
- rate lockFrozen lending percentage
prime rate · percentage · points · basis points · spread · discount · buydown · relock
Numerical standing in competition
- FICOCreditworthiness rating system
- reportFormal written findings
- historyRecord of past events
- bureauOffice or furniture chest
Experian · Equifax · TransUnion · rating · check · worthiness · utilization · debt-to-income
loan
Borrowed money repaid later
equity · appraisal · closing · origination · underwriting · amortization · escrow · principal · title · preapproval
debt consolidation
Combining multiple balances owed
- cash-outConvert assets to currency
- rate reductionDecrease in charges
fees
Costs for services
- closing costsFees finalizing property purchase
- appraisal feeCharge for professional valuation
- origination feeLender's upfront service cost
title insurance · points · prepayment penalty · break-even · out-of-pocket · no-cost · rolling in · attorney fees
APR
Yearly borrowing cost
- fixedRestored or immovable
- variableProne to fluctuation
- adjustableAble to be changed
rate lock · prime rate · percentage · points · basis points · spread · discount · buydown · relock · comparison
score
Numerical standing in competition
bureau · Experian · Equifax · TransUnion · rating · check · worthiness · utilization · debt-to-income · qualifying
refinancespays off
Produces a positive result
settles · discharges · liquidates · clears · extinguishes
- refinance loanNew loan replaces old
- debt refinancingReplacing existing obligation with new terms
- refinancing optionsLoan replacement possibilities