What is refinancing risk?
The risk that loan maturity arrives when rates are higher, lender standards tighter, income weaker, or values lower, forcing worse terms, new equity, a sale, or an extension. Most acute when low-rate loans mature into a higher-rate market.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.