ESLGold.com - The world's biggest and best ESL resource onlineGreat Resources For Teaching & Learning English                                                                                  
 

Skills
Speaking
Listening
Reading
Writing
Grammar
Vocabulary
Business English
Pronunciation
TOEFL/TOEIC
Idioms

Levels
Low Beginning
High Beginning
Low Intermediate
High Intermediate
Advanced


ESL Vocabulary Resources - Learn to Speak English

Refinancing

Definition From Wikipedia, the free encyclopedia
Jump to: navigation, search

Refinancing may refer to the replacement of an existing debt obligation with another debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as, inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.

If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.

A loan (debt) might be refinanced for various reasons:

  1. To take advantage of a better interest rate (a reduced monthly payment or a reduced term)
  2. To consolidate other debt(s) into one loan (a potentially longer/shorter term contingent on interest rate differential and fees)
  3. To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees)
  4. To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan)
  5. To free up cash (often for a longer term, contingent on interest rate differential and fees)

Refinancing for reasons 2, 3, and 5 are usually undertaken by borrowers who are in financial difficulty in order to reduce their monthly repayment obligations, with the penalty that they will take longer to pay off their debt.

In the context of personal (as opposed to corporate) finance, refinancing multiple debts makes management of the debt easier. If high-interest debt, such as credit card debt, is consolidated into the home mortgage, the borrower is able to pay off the remaining debt at mortgage rates over a longer period.

For home mortgages in the United States, there may be tax advantages available with refinancing, particularly if one does not pay Alternative Minimum Tax.

 


ESL Videos to help you speak English

Rosetta Stone - English

Speak English as a Second Language

Learning English - Lesson One


English Greetings & Phrases

English Pronunciation

English - Introductions



                  






© Copyright 2014 ESLgold.com - All Rights Reserved Worldwide - Arlington, VA, USA

TOEFL and TOEIC are registered and administered by Educational Testing Service (ETS).
No connection with Eslgold.com is implied.

   
Phrases for Conversation
Conversation Topics
Today's News Stories
Language Tutors
Speaking Situations
English Conversation Partners
Speaking Tasks
Articles for Discussion

  

What's New?
Free-English-Study.com
Places to Study
Practice Your English
Daily Lessons
Join Us on Facebook!
Verb List
Job Center
TESOL Courses
Videos
Words in the News
Pictures, Words and Audio
Grammar Explanations
Business Expressions
Teacher Resources
ESLgold Dictionary
Reading Exercises
Todays-Talking-Topics.com
Textbook Recommendations
Resources for Success
Current Topics
Humor
Software and CDs
Word of the Day
Academic Vocabulary Quizzes
Information Articles