Glossary · BankingWhat is Refinancing?Also known as: refinancing a loanRepaying an existing loan with a new loan, usually on more favorable terms (lower interest, longer term). Before refinancing, you should also take into account the fee and other costs of the new loan and compare whether there is an overall benefit.Source: Britannica Money: What is mortgage refinancing?See alsoCredit (bank loan)Interest rateAnnuity repayment