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  • What Is Refinancing?

    Refinancing replaces an existing loan with a new loan that pays off the debt of the old loan. The new loan should have better terms or features that improve your finances.1 The details depend on the type of loan and your lender, but the process typically looks like this:

    1. You have an existing loan you would like to improve in some way.
    2. You find a lender with better loan terms, and you apply for the new loan.
    3. The new loan pays off the existing debt completely.
    4. You make payments on the new loan until you pay it off or refinance it.
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