refinance
Americanverb (used with object)
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to finance again.
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to satisfy (a debt) by taking out another loan typically on more favorable terms, as a lower interest rate and reduced monthly payments, or a longer period of time to repay.
She was able to refinance her mortgage to a much lower 30-year fixed interest rate.
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to increase or change the financing of, as by selling stock or obtaining additional credit.
The university issued bonds to refinance the recent construction of a library and dormitory.
verb (used without object)
Usage
What does refinance mean in mortgages? To refinance a loan means to replace it with a new loan typically in order to take advantage of more favorable terms, including a lower interest rate and reduced monthly payments, or a longer period of time to repay. By refinancing a loan, a person or business can free up some cash to use for other purposes. This term is often shortened to the more informal refi.
Etymology
Origin of refinance
Explanation
To refinance a loan is to start the terms over again, usually with a lower interest rate. If you buy a house with a mortgage at a high interest rate, you may be able to refinance later and pay less each month. When you take out a loan from a bank, you always have to pay interest — you agree to pay the money back, plus a certain monthly or yearly percentage of it. If this percentage is high, or the monthly payment is too much, you can sometimes refinance the loan and get new terms that are better. Finance was originally an Old French word meaning "payment" or "settlement of a debt."
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
See Examples For:
Many people were able to buy a home or refinance at interest rates well below 4% or even below 3%.
From MarketWatch ● Aug. 14, 2026
If you have excellent credit, now could be the time to refinance your auto loan.
From The Wall Street Journal ● Aug. 7, 2026
Check current auto-loan refinance rates to see if you can save.
From The Wall Street Journal ● Jul. 31, 2026
In 2006, home prices stopped rising at a rate that allowed overleveraged borrowers to refinance, which led to a domino effect and the crisis, he said.
From MarketWatch ● Jul. 29, 2026
The mobile home buyer, unlike the ordinary home buyer, couldn’t expect to refinance in two years and take money out.
From "The Big Short" by Michael Lewis
The average percentage point interest rate decrease for Americans who refinanced their auto loans in the first quarter of 2026.
From The Wall Street Journal ● Jun. 24, 2026
Allen confirmed he is negotiating with lenders over substantial debt payments coming due in the next year, but said he is “highly confident they will get refinanced or extended.”
From Los Angeles Times ● Jun. 8, 2026
Cash interest and dividends will come in as long as borrowers have the cash flow, but PIK collection depends on investments getting repaid, refinanced or sold, he notes.
From Barron's ● May 6, 2026
Hovnanian Enterprises, the Matawan, N.J.-based home builder, refinanced $900 million in senior notes last fall, saving $12 million a year in interest.
From The Wall Street Journal ● Jan. 22, 2026
It was easy to understand why originators like Option One and New Century preferred to make these sorts of loans: After two years the borrowers either defaulted or, if their home price had risen, refinanced.
From "The Big Short" by Michael Lewis
In Johnson City, Tenn., financial adviser Sawyer Sams said he saved about $300 a month by refinancing a 30-year mortgage with a rate of 6.25% to an ARM with an initial rate of around 5.25%.
From MarketWatch ● Jul. 22, 2026
Also, roughly 40% of the companies in the Russell 2000 are unprofitable, making them even more vulnerable to refinancing risk.
From MarketWatch ● Jun. 30, 2026
Adults under 35 turn out to be the savviest shoppers when it comes to refinancing, according to the research.
From The Wall Street Journal ● Jun. 26, 2026
In addition to refinancing debt, SpaceX could choose to borrow for new projects—something that might try investors’ patience coming just weeks after its IPO.
From The Wall Street Journal ● Jun. 22, 2026
In the majority of cases the need of refinancing arises from bad management, and the effect of refinancing is simply to pay the poor managers to keep up their bad management a little longer.
From My Life and Work by Henry Ford
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
