Refinance

Refinancing may be undertaken to reduce
interest costs (by refinancing at a lower rate),
to extend the repayment time, to pay off
other debts, to reduce one's periodic payment
obligations (sometimes by taking a longer
-term loan), to reduce or alter risk
(such as by refinancing from a variable-rate
to a fixed-rate loan), and/or to raise cash
for investment, consumption, or the payment
of a dividend.In essence, refinancing can
alter the monthly payments owed on the loan either
by changing the loan's interest rate, or
by altering the term to maturity of the loan.
More favourable lending conditions may reduce
overall borrowing costs.