Final answer:
The Sandersons' plan to refinance their home falls under the mortgage refinancing process, impacting their personal finance and home equity.
Step-by-step explanation:
Understanding Mortgage Refinancing
When the Sandersons are planning to refinance their home, they are engaging in the 'mortgage refinancing process'. This involves reassessing their existing home loan to potentially secure a lower interest rate, different loan terms, or to convert home equity into cash.
This decision represents a significant personal finance choice, as it affects the long-term financial commitments and the building of home equity. Evaluating the decision to refinance involves assessing the financial aspects of home ownership and the available options to manage the associated costs and benefits.
This includes understanding how loans work, the various fees involved, and the implications of such financial decisions within the primary and secondary loan markets.