Refi (refinance) involves a situation when a borrower (e.g., a mortgagor) takes out a new loan, such as a mortgage loan, (on better terms, i.e., a lower interest rate) to pay off an outstanding loan (originally extended at a higher interest rate). A borrower contemplating a refinance must consider the costs and benefits of replacing a loan with another. As a process, refinancing is subject to a borrower meeting a set of requirements and conditions to be eligible, particularly in terms of credit status screening, ability to finance the new loan, and so on.
In specific situations, refinancing may take long time to process, and nevertheless it may not be guaranteed.
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