Loan
Refinancing
Refinancing may be undertaken
to reduce interest costs to extend the repayment time, to
pay off other debts, to reduce one's periodic payment obligations
,to reduce or alter risk ,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.
|
