Editing Refinancing (section)

==== Mortgage refinancing ====
[[Mortgage loan|Mortgage]] refinancing is normally based around the objectives of homeowners and often relates to residential housing loans. The specific types of mortgage refinancing include rate-and-term, cash-out, cash-in, no-closing-cost, and streamline.<ref name=":0">{{Cite web|last=CEPF|first=Laura Grace Tarpley|title=How to choose between the 5 types of mortgage refinance programs|url=https://www.businessinsider.com/personal-finance/types-of-refinance-mortgage|access-date=2022-02-24|website=Business Insider|language=en-US}}</ref> Rate-and-term refinancing is what most people think of when it comes to mortgage refinancing. It includes replacing your original mortgage with a new one, without significant change in the unpaid principal balance. Cash-out refinancing enables homeowners to extract cash out of their home equity value, resulting in an increase in the unpaid principal balance. Cash-in refinancing allows homeowners to pay into their mortgage, resulting in a decrease in the unpaid principal balance to work towards the goal of gaining a better interest rate or lowering monthly payments. No-closing-cost refinancing helps homeowners avoid paying closing costs at closing by adding the closing cost to the unpaid-principal balance and amortizing it over the term of the loan. Streamlined refinancing helps homeowners skip steps in the refinance process such as appraisals and credit history checks but normally is only available for government-backed mortgages.<ref name=":0" /><ref>{{Cite web|title=Types Of Mortgage Refinance: Top 9 Options|url=https://www.rocketmortgage.com/learn/types-of-refinance|access-date=2022-02-24|website=www.rocketmortgage.com|language=en}}</ref>

Refinancing is a major reason for mortgage [[prepayment of loan|prepayment]], which can reduce the realized returns on [[mortgage-backed securities]].