Home loan refinance is the process of replacing an existing home loan with a new one, typically with a different lender or with the same lender. The purpose of refinancing is usually to obtain better loan terms, such as a lower interest rate, which can result in lower monthly payments or reduced total interest charges over the life of the loan.
Homeowners may also refinance to switch from an adjustable-rate mortgage to a fixed-rate mortgage or to shorten the loan term, which can help them pay off their mortgage faster. Refinancing can also provide an opportunity for homeowners to tap into their home equity and access cash for home improvements, debt consolidation, or other purposes.
