Altered Mortgage (ALTERED MTGE) is a type of mortgage loan that has been modified to meet the needs of the borrower. It is often used when a borrower is unable to make their regular payments on their existing mortgage loan. The term REFI is an acronym for refinancing, which is the process of taking out a new loan to pay off an existing loan. Refinancing can be used to reduce the interest rate, extend the loan term, or change the loan type.