What is a ReFi Loan?
Refi is a slang or colloquial term for refinancing, and is used to describe a loan that refinances and changes the terms of an existing debt. People may seek a refi loan to refinance a home mortgage for one or more of several common reasons. Some use new loans to secure or lock in lower interest rates or to remove some equity owned in the home, which may then be used to pay off high interest debts, to meet other financial obligations, or to do things like invest in home improvements. When a refi loan is obtained, it replaces the terms of the old loan. This means that interest charges may be different, monthly payments can change and length of time of the new loan is clearly defined. When interest rates go down, the principle object may be to lower monthly payments by paying less interest, but not everyone who gets a refi loan pays less per month. Some people may actually pay more if they’re interested in removing equity from the home. Especially when housing values rise, people may fin
