# Refinancing

*Borrowing & Credit — Finicade finance glossary*

Replacing an existing loan with a new one on better terms — usually a lower rate. Done right it cuts your payments; watch the fees, which can eat the savings.

**Also known as:** refinance

**Related terms:** [Mortgage](https://finicade.com/glossary/mortgage), [Interest Rate](https://finicade.com/glossary/interest-rate), [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr)

Source: https://finicade.com/glossary/refinancing