What does it mean to refinance a home?

[Norman Lai]

Hello everyone! I was just wondering if anyone can give me an example/definition of refinancing and how it works. I know it's pulling out a second loan after paying off the first loan? Does this mean it only applies if you borrow money from banks? Please help! I am reading and trying to learn more about everything and just want to make sure I'm understanding how it works :) Thank you!! Norman