Refinancing is the process of switching a debt, such as a mortgage or a personal loan over to a new loan with different – more favourable terms. This is most commonly done in order to save money or get better terms on your current loan.
People choose to refinance their loans or mortgages for a variety of reasons including to fold-in other debts, to lower monthly payments, or to take advantage of better interest rates. While it is usually a winning situation for the borrower one should be aware of the advantages and disadvantages to taking on a refinance.
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