When you refinance a debt, you replace one debt with another debt. The goal of refinancing a debt is usually to secure a better interest rate and payment terms—such as lower monthly payments. You might also seek to consolidate some debts through refinancing by borrowing enough money from an existing lender to pay off some debts to other lenders (such as credit cards) and make one smaller monthly payment, rather than multiple monthly payments.

In Mississippi, refinancing a debt involves taking out a new loan to pay off an existing one. This process is often sought by borrowers to obtain a lower interest rate, reduce monthly payments, or consolidate multiple debts into a single payment. The terms and availability of refinancing options are influenced by the borrower's creditworthiness, current market interest rates, and the policies of financial institutions. State statutes do not specifically regulate the act of refinancing; however, they do govern the licensing and practices of lenders and protect consumers from predatory lending practices. Federal laws, such as the Truth in Lending Act (TILA), also provide borrowers with rights to receive clear information about the costs of refinancing and the right to rescind certain types of credit transactions within a three-day period. It is advisable for individuals considering refinancing to consult with an attorney to understand the implications of the new debt agreement and to ensure that the terms are favorable and compliant with applicable laws.