explaination letter

guest, that ought to be simple. of course, we don't know what the specific request was that was made of you, but if all you need to do is outline the reason(s) why you are seeking a refinance, then that's all you need to do. for instance, "to whom it may concern - i wish to refinance because..."

I personally do not think it wll be explanation for refinancing.
You should just inform or mension in letter that you are going to refinance for so and so reason.
That is sufficient i think.
Just do quick analysis of your situation.

i'm puzzled.