Mortgage refinancing is changing the term of the mortgage before the maturity date of the mortgage. A borrower refinancing their mortgage will be breaking their current mortgage, and often incurring an applicable penalty for early repayment, and replacing their mortgage with a new mortgage.
Home owners are often refinancing their mortgage to get a lower interest rate, consolidate debt, do home renovations, or access equity from their home. Refinancing a mortgage requires a borrower to qualify for the new mortgage with their income and credit.
Refinancing a mortgage can be done at any time during the term of the mortgage, or even at the time of the maturity of the mortgage, to avoid penalty for early repayment of the existing mortgage.