What does it mean to refinance your mortgage?

I bought a house for $200,000. My interest rate was 7 percent. Now I owe $170,000 on my house, and interest rates are now much lower. So I get a new mortgage for the 170K, at 4 percent interest. My payments per month were reduced by $400 to $500 per month.

Basically it means you apply for a new mortgage at a better rate. When it closes the new loan is used to pay off the old mortgage and closing costs & you get the difference if there is any. So basically you get a new loan to pay off the old one.

You basically get a new mortgage to pay off and replace the old one if a better mortgage is available to you than the one you have.

You are basically taking out a new mortgage to pay off your old one. The most common incentive to do this would be to save yourself money by being able to get a new mortgage at a lower interest rate than your old one.

It means to pay off your existing loan by getting a new loan.

you basically trade in your existing loan and take out a new one which usually is for the amount you owe plus whatever you want to tack on .. it may or may not work out to the same payment depending on the interest rate .. theres alot of ways to do it depending on what youre trying to achieve ..

Redo it.

Look up the word REFINANCE.