Refinance

Refinancing is not a second monthly payment on the same note. It is a new mortgage that pays off the current one. People refinance to change the rate, the term, or the amount of cash taken out, among other reasons. A cash-out refinance is a specific form that increases the unpaid principal to take cash. Rate-and-term changes without extra cash are a different pattern. This page is the general replacement idea.

Consumer glossaries describe refinancing as paying off an existing mortgage with a new one. Program streamline products are variants, not this definition.

Closing costs, cash to close, and a new Loan Estimate appear because the refinance is a new origination, not an edit to the old note.

• Cash-out refinance
• Mortgage
• Mortgage payoff