I don't know anything about money. Please explain in layman's terms?
2007-01-24 15:38:39 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
Paul: I am imagining your example. Now I ask, what are the benefits of doing that? Is it because you get some cash and get to pay off your house? I guess that answers my own question, but it just seems like you're going to have a new bigger loan to pay off anyway. Thanks for being patient with my confusion.
2007-01-24 16:10:02 · update #1
Refinancing is when you have a loan, and you get another loan to pay off the first loan.
Example. I borrow $100,000 to buy a house. 10 years later I still owe $90,000, but the house is now worth $200,000, and I need cash. I get a loan from a bank for $150,000, pay off the $90,000 first loan, and keep $60,000 "cash out."
2007-01-24 15:48:22 · answer #1 · answered by Paul P 2 · 0⤊ 0⤋
The process of replacing an older mortgage/loan with a new mortgage/loan....using the same piece of property (house). You can also refinance your car
2007-01-24 23:47:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Refinancing is where you talk to your bank about renegotiating the terms of what you owe.
Sometimes it works - and you owe less money, sometimes it doesn't - and you end-up owing more money!
2007-01-24 23:48:34 · answer #3 · answered by jcurrieii 7 · 0⤊ 0⤋