Refinancing may be undertaken to reduce interest rate(by refinancing at a lower rate), to extend the repayment time, to pay off other debt(s), to reduce a periodic payment obligations (sometimes by taking a longer-term loan), to reduce or alter risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to raise cash for investment, consumption, or the payment of a dividend.

Answered by Admin - 8 months ago