A mortgage for a refinance is a new loan that replaces an existing mortgage on a property. Homeowners typically refinance their mortgage to take advantage of lower interest rates, reduce their monthly payments, change the loan term, or access the equity they’ve built up in their home. When refinancing, the new mortgage pays off the balance of the original loan, and the homeowner begins making payments on the new loan under the new terms. This process can help homeowners save money over time, reduce their debt faster, or free up cash for other financial needs.