Refinancing

[Filip Vaco]

Hi everyone! 

I understand that this might be a stupid question, but could please somebody explain to me what exactly refinancing is?

I hear that term a lot and even after my initial little search I'm still having trouble fully understanding it. 

I appreciate your help and time.

Filip Vaco

[Jon Holdman]

"Refinancing" means getting a loan on a property you already own.  That's as opposed to a "purchase money mortgage" that's used to buy a property.  Many times, refinancing pays off an existing mortgage, but that's not always the case.