If you have made a decision about home loan refinancing, you will obtain a new credit with altered terms and conditions. Refinancing is done in order to get better interest rate and, probably, a new balance. This financial option can be proposed by the same lender that gave you the existing loan.
However, you can also apply to a different loan provider for a new credit. In most cases this variant is more beneficial, as the old lenders don’t offer good terms.
The main term of refinancing is using a new loan to cover the previous one. The most important advantage is that you can get lower interest rate for a new loan.
Also, if you choose to refinance your mortgage, you can cash out the equity you have already accumulated. By the way, find out what is home equity?
Depending on a lender, you can be proposed various terms and conditions, so to get the best deal you need to make careful consideration.