Personal Finance

Refinancing

Definition

What is Refinancing?

Replacing an existing loan with a new one, usually to change rate, term, currency, or payment structure.

Example in practice

A homeowner refinances after mortgage rates fall.

Keep learning

Money set aside rather than spent, often for emergencies or future goals.

Liquid savings reserved for unexpected expenses or income disruption.

Total assets minus total liabilities.

Annual portfolio withdrawals divided by the portfolio's starting or current value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.