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Define refinance
According to Wikipedia: Define refinance means
Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms. The most common consumer refinancing is for a home mortgage.
This gives you the definition of refinance, but to really define refinance you have to understand the scope of real estate, property, and property valuation. In order to purchase a property, most people have to acquire a loan from a bank or a money source to make the purchase. The bank or lending source provides the lump sum of the purchase amount for the buyer, then they receive monthly payments for that lump sum over a period time defined in the loan documents. Most common loan period is 30 years for a loan, although the 40 year loan is gaining in popularity.
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