Question by Suomynona: What is “refinancing”? Does refinancing mean paying off an existing mortgage and taking out another mortgage?
What does it mean in this context? The housing boom spurred economic activity because consumers refinanced at lower interest rates, allowing them to spend their savings from the lower interest rate.
Answer by Ambassador Z
“Refinancing” means that the balance of your mortgage owed will be reconfigured at the lower interest rate, but still due at the same day each month and paid off at the pre-agreed pay-off date.
No, it does not mean paying off an existing mortgage.
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