what exactly is refinacing.

 

let's say you currently have a loan on something (a car, motorcycle, house etc). Well, you find a better rate with another Bank or even the same Bank. You apply for that loan and that loan pays off your previous loan. You have just refinanced.

 

I had a 30 year mortgage in 2001 for 7.125%, and [i]refinanced]/i] to a 20 year at 6% in 2003....

Most people have refin'd their house mortgages lately because mortgage rates have been low.

 

OK heres the case. My dad is refinacing a property so he can get a loan to buy another one. So the one he refinanes on will be own by the bank then?

 

Even now it should be owned by the first bank, unless he owns it free and clear. Don't understand exactly what you are trying to ask.

 

Well there's a lien with the bank's name on it. Sounds like he's getting more money than he owes. This is called a cash-out refinance. Whatever cash is left over after paying off the original mortgage can be used for whatever he wants.