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Initiate Loan Refinance

Overview​

Replace existing loans with new loans under different terms, typically to obtain better interest rates, extend repayment periods, or access additional funds.

What It Does​

This feature allows borrowers to refinance existing loans by creating new loans that pay off existing balances, often with improved terms, extended periods, or additional cash out.

Business Value​

Retains customer relationships through competitive refinancing while generating new loan origination revenue and adjusting loan terms to current market conditions.

Who Uses This Feature​

Loan officers, mortgage specialists, and commercial lenders use this feature to help customers refinance existing loans.

Key Capabilities​

  • Create new loans with improved terms
  • Automatically pay off existing loans
  • Calculate cash-out amounts when applicable
  • Update collateral documentation
  • Generate refinance closing documents

How to Use​

Evaluate refinance request, underwrite new loan terms, calculate payoff and new loan amounts, process approval, close new loan, and pay off existing loan.

Common Use Cases​

Rate reduction refinancing, term extension to lower payments, cash-out refinancing for renovations or other purposes, or consolidating multiple loans.

Important Considerations​

Refinancing typically requires new underwriting and approval. Consider closing costs versus savings and cash-out impact on loan-to-value ratios.

Integration with Other Processes​

Integrates with loan origination, underwriting, collateral management, and loan servicing systems.

Related to loan origination, loan payoff, and loan modification features.