When Is the Right Time to Refinance?

[Suba]

Refinancing is a financial strategy for debt management, which can be undertaken by individuals or businesses. It involves taking out a new loan to replace or pay off an old loan. The primary purpose of refinancing is to change the terms of the old loan to better terms.

A new loan can be taken out from the same bank or a different bank. If approved, the new loan can be used to repay the entire old loan. The remainder of the new loan can be used to expand the business or increase working capital.

 

[Springtime]

Yes, a lot of people and businesses are doing this. When they need additional money for personal purpose or finance a business project, they can do refinancing. Get a loan with better terms and conditions.

 

[Starmix]

It's a situational case, despite I haven't experienced it but my point about it is, it's essential to refinance if the old debt is almost to finish and there's another goal the person wants to pursue.