Real Estate Investing Glossary
Refinance
To refinance is to replace an existing mortgage with a new loan, usually to change the terms, the interest rate or the loan amount.
To refinance is to replace an existing mortgage with a new loan, usually to change the terms, the interest rate or the loan amount. The new loan pays off the old one.
Why it matters to a Las Vegas investor
Investors refinance for different reasons, such as changing a payment or reaching the equity in a property. Because it replaces the loan on a rental, it changes your monthly cost and should be weighed against your long-term plan for the property.
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Questions about Refinance
Does refinancing cost money?
Usually yes. A new loan typically involves fees and closing costs, which is why it helps to look at the full cost before deciding.
Is refinancing the same as buying a new property?
No. You keep the same property and replace only the loan secured against it.