Difference between revisions of "Refinance"
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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]] | 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]] | ||
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| + | == See Also == | ||
| + | * [[Baloon Risk]] | ||
[[Category:Loan Product]] | [[Category:Loan Product]] | ||
[[Category:Prepayment Risk]] | [[Category:Prepayment Risk]] | ||
Latest revision as of 17:52, 16 May 2024
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
