Refinancing a mortgage is the process of obtaining a new loan to pay off an existing mortgage. This can be done to take advantage of lower interest rates, to change the loan terms, or to access the equity in a property. When refinancing, the homeowner is effectively replacing their original mortgage with a new one, which often involves paying closing costs and fees. The goal of refinancing is typically to lower monthly payments, reduce the overall cost of the loan, or free up cash for other expenses. It's important to carefully consider the potential benefits and drawbacks of mortgage refinancing and to shop around for the best rates and terms before making a decision.