When you take out a loan or mortgage, you agree to pay back the loan at a specific interest rate over a specific time frame. Almost immediately, it seems, you’ll start getting mail suggesting that you should refinance your loan. What is refinancing, what are the pros and cons, and should you do it? Let’s take a look at loans and refinancing in more detail below. What is a Loan? A loan occurs when one party (for instance, a bank) lends you money to purchase something usually tangible, like a house or car. That money is the principal. The lender […]
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