Refinancing
Credit scores & reportsReplacing an existing loan with a new one, often to change the rate or term.
Overview
Refinancing can lower payments or reduce interest, but may involve fees.
It usually requires a new credit assessment.
Why it matters
- It can reduce borrowing costs.
- It can change your repayment schedule.
- It may affect your credit score through a hard search.
FAQs
Is refinancing the same as remortgaging?
Remortgaging is refinancing a mortgage. Refinancing can apply to other loans too.
Will refinancing hurt my credit score?
It can cause a temporary dip due to a hard search.
Related terms
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