What does refinancing a home mean?

Rodolfo
or refinancing a car?i know it has something to do with getting a lower interest, but like let's say you're 10 years into paying you house on a 30 year loan and you refinance, do you start over? do you owe 30 years worth again???someone please explain this to me.thanks.

Mistie
Refinancing is defined as replacing a current debt with current terms and contract with a new debt obligation with new terms. The primary reason people do this is to get a lower interest rate. But say you are 10 years into a home mortgage you could refinance for 30 years again or you could also choose to do the remaining 20 years in 15 of course. The problem with refinancing homes right now is the fact that home values have decreased so much most people are "upside down" which means they owe more the the house is worth, and in that situation you definitely could not refinance. Hope I clarified.

Angelia
Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same assets, property etc. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate. Benefits of Home RefinancingImagine a scenario where you can have access to extra cash, while simultaneously lowering your monthly mortgage payment. This dream can become a reality through mortgage refinancing. Benefits of Home RefinancingA house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you'll have in your monthly budget. Wouldn't it be great to use this asset to reduce your monthly payment and put extra cash in your pocket? When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.