Recent Examples of refinance from the Web
And after a few years of establishing a payment track record and getting rid of other debts, borrowers can refinance into a lower-cost mortgage — an option taken by 113 borrowers so far in the SUN program, Cherry said.
The looming loss of the advanced refunding tool spurred the Lake Station City Council to authorize the sale of bonds to refinance its City Hall mortgage before the year ends.
To create breathing space, the embattled retailer will look to raise cash by selling assets and try to persuade banks to refinance its debt.
The likeliest outcome still remains a compromise, given the financial disruption that would come from the Bank of Spain and ECB refusing to refinance the region’s banks in the event of independence.
That includes allowing college students to refinance student loan debt, increasing child care tax credits and shutting down the troubled Lincoln Hills juvenile prison as part of a criminal justice overhaul.
One break for refinancing municipal bonds — which saved New York City alone $425 million over the past four years — would be gone.
Or refinance with a low-interest personal loan from a credit union, bank or online lender.
Shanahan told the council in a special meeting about the pending tax law provisions that would eliminate the ability to refinance.
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First Known Use of refinance
Financial Definition of REFINANCE
How It Works
Financing involves borrowing a specific amount of money over a length of time at an agreed-upon interest rate. Payments on the debt are divided between interest and principal. If circumstances change, for example, the length of time needed to repay the debt is longer and the lender agrees, the loan may be refinanced, extending the term and lowering the period payments (because they are extended over a longer period of time.) If interest rates change, the debt may be refinanced using a lower interest rate.
For example, the $150,000 loan below is shown with a term of 15 years at 8% per year. By year 5, the market interest rate drops to 5%. When the loan is refinanced over the balance of the term, for example, the savings in principal and interest payments on the loan will be over 32,000.
Refinancing may also convert an adjustable rate mortgage to a fix rate mortgage, reducing the interest rate risk to the borrower.
Why It Matters
Refinancing may be restricted on debts containing "call provisions," requiring a penalty payment in the event of a refinancing. In addition, a refinancing usually requires a closing and transaction fee that may be expensive. As a result, it is important to calculate the present value (the value in today's dollars) of the savings and compare it to the closing costs of the refinancing.
REFINANCE Defined for English Language Learners
legal Definition of refinance
- refinance a mortgage
Seen and Heard
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