For majority of borrowers, the main aim for taking the loan is to buy a property.
Customer is approved for a mortgage before they sign a sales contract with a seller for a specific property.
This is taken to payoff of an old mortgage with a new mortgage. Normally home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one.
Rate and Term
Customer refinances their old mortgage in order to obtain a lower interest rate or a different term.
Customer refinances their old mortgage and borrows more than the outstanding balance in order to walk away with extra money.
Example; payoff other debts or to do home improvements.
This is where the owner physically lives.
It is the vacation home that the customer has in addition to their primary residence.
This is the property that the customer will not live in. This is bought only for an investment purpose.