What is Legal Terms - Refinance?

Refinance Information: To refinance is to renew a loan transaction. Essentially, the entire original loan agreement is done away with and it is replaced with a new agreement. Homeowners in recent years have been able to take advantage of declining market interest rates by refinancing their older home loans. Payment amounts are thus lowered. Refinancing can also allow homeowners to cash out a portion of their equity in the home. The bank, or other lender, can charge fees for doing the refinance work.