Get back in the game.
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. The details depend on the type of loan and your lender, but the process typically looks like this:
- You have an existing loan you would like to improve in some way.
- You find a lender with better loan terms, and you apply for the new loan.
- The new loan pays off the existing debt completely.
- You make payments on the new loan until you pay it off or refinance it.
If you have a loan that’s too expensive or too risky to live with, you often can refinance into a better loan. Things may have changed since you borrowed money, and several ways may be available for you to improve your loan’s terms.