What does refinancing typically aim to achieve?

Refinancing primarily aims to achieve lower interest rates on existing loans. By refinancing, a homeowner takes out a new mortgage with terms that are generally more favorable than the original loan. This process can lead to reduced monthly payments, freeing up cash flow for other expenses or investments. Additionally, securing a lower interest rate can result in significant savings over the lifetime of the loan, allowing homeowners to pay less for their mortgage overall.

While other options like transferring ownership, increasing property value, and selling the property are related to real estate transactions, they do not capture the primary objective of refinancing. Refinancing is specifically focused on restructuring the existing debt to improve the financial terms for the borrower, making lower interest rates the main goal.