what is a refinance 
a refinance or refi for short refers to revising and replacing the terms of an existing credit agreement usually as it relates to a loan or mortgage when a business or an individual decides to refinance a credit obligation they effectively seek favorable changes to their interest rate payment schedule or other terms outlined in their contract if approved the borrower gets a new contract that replaces the original agreement borrowers often refinance when the interest rate environment changes substantially causing potential savings on debt payments from a new agreement 