Equity Refinance

[Eugine]

An equity refinance is a method of restructuring a mortgage, essentially paying off an existing mortgage on a property with another. Effected by utilizing the existing equity in the property as the down payment, an equity refinance is done either to lower the periodic payments on the mortgage or to liquidate some of the borrower's equity in the property, or sometimes both. There are advantages and drawbacks associated with an equity refinance.