I remember the first time I bought a house and shopped around for a home mortgage loan. I was so nervous about the process, because all of the terminology was so new to me. Not to mention the amount of money that was on the line!

Many people feel the same nervousness about home refinance loans. Granted, homeowners are typically more educated about home financing than first-time home buyers are. But even so, the process of home refinance can be intimidating if you’ve never been through it before.

The key, then, is to learn about home refinance from all angles. Once you learn the basics, you will know (A) whether or not refinancing is a good idea for you, (B) how to move forward with the process, and (C) how to get the best rates on your new home loan.

And what better place to start than with home refinance terminology?

Learning Home Refinance Terminology

We have a variety of resources on this website to help you learn about the “lingo” of the home refinancing world. Simply by perusing the many articles on our website, you can get a feel for the concepts and terminology associated with the home refinance process. We also have a glossary of general mortgage terms you can use.

An example of a commonly used term related to home refinancing is the “break-even point.” Not only is this a common phrase in the industry, but it’s also a key concept you must understand before you pursue a home refinance loan in the first place. The break-even point refers to the point at which it makes sense for you to finance your home mortgage. It is when the money you save (by paying lower interest on the new loan) exceeds the money you spend (for closing costs on the new loan).

You can learn more about the break-even point (BEP) from this explanation of refinancing costs.

Remember, you must learn everything you can about the home refinance process before venturing into it. And terminology is a great place to start. In addition to using this website, seek out other sites that provide glossaries related to mortgage refinancing and similar topics.

Good luck!

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