Microsoft Encarta defines \'mortgage\' as \'an agreement by which somebody borrows money from a money-lending organization such as a bank or savings-and-loan association and gives that organization the right to take possession of property given as security if the loan is not repaid.\'

Let\'s take two examples. Bethany and Nancy want to buy a new house each. But they don\'t have enough funds. However, Nancy has a large house whereas Bethany doesn\'t have any. Is their a way out for them? Yes. Both apply for a loan. Bethany pledges the house that she is likely to buy. Nancy pledges the house that she owns already.

In simple terms, a Mortgage Refinance is a loan to buy a home by pledging an existing or prospective home. When people apply for Refinancing, their application is handled on individual merits. They can submit the application directly to the lender. Or, if they need some assistance to decide on the Refinance plan that is suitable to them, they can consult any mortgage professional. The mortgage professional can evaluate their credit situation, recommend the appropriate Refinance Program, and help them submit the application to the lender.

Once the application is submitted, the borrowers\' Credit Report, Credit Profile, Mortgage Property Appraisal, Mortgage Property Title Report and all other relevant information as given in the application is verified.

The Credit Profile is a documentation of how a borrower repaid any previous loans or met any previous financial obligations. It contains: Personal Identity Information, Employment Information, Credit Information, Public Record Information and References. The lending institution makes a very careful assessment of the documents.

Once the loan is approved, the borrower is asked to sign the relevant Refinance papers, the loan is advanced, the mortgage property is recorded and the fund is disbursed to the beneficiary.

Until Bethany and Nancy repay their loans, their pledged houses come under possession by the lender institution as a security. A Mortgage Refinance transaction takes 2 to 3 weeks to complete. All lender organizations have loan officers who help in mortgage needs. Today, a borrower can apply and consult a loan officer online.