A refinance, or refi for short, refers to revising and replacing the terms of an existing credit agreement, usually as it relates to a loan or mortgage. Refinancing a loan or mortgage is typically done to take advantage of lower interest rates or improve the loan terms, such as the monthly payment or length of the loan. If approved, the borrower gets a new loan that replaces the original.
An investment property loan is a mortgage specifically designed for purchasing properties intended to generate income, either through rental yields or future resale. Unlike primary residence mortgages, these loans come with different requirements and often higher interest rates due to the increased risk associated with investment properties.
