Refinance
From Open Risk Manual
Definition
Refinance is the process of replacing an existing Loan with a new loan, where the new loan will be used to pay out (retire) an existing loan, and that loan is not near or in default.
From the perspective of the Borrower refinancing may be subject to Refinancing Risk (their ability to refinance in acceptable terms). From the perspective of the Lender, refinancing may constitute Prepayment Risk
