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:
“If we refinance now, we would have to stay in the home for at least five to eight years for the break-even point to even make sense a little bit,” Markowicz said.
From MarketWatch ● Jul. 22, 2026
You can also make extra mortgage payments when it makes sense or refinance if interest rates decline in the future.
From MarketWatch ● Jul. 20, 2026
Borrowers must refinance in an environment of high interest rates and reduced funding availability.
From MarketWatch ● Jul. 9, 2026
Shortly after its IPO in June, SpaceX also issued its first-ever bonds, selling $25 billion of debt in large part to refinance an earlier loan from banks.
From The Wall Street Journal ● Jul. 7, 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 SpaceX IPO could lead to 8% of America’s current-account deficit being refinanced in a single day.
From MarketWatch ● Jun. 10, 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
Owners who had refinanced at pandemic-era lows wouldn’t move; would-be buyers couldn’t afford what was for sale.
From The Wall Street Journal ● May 14, 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
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
The rule of thumb for refinancing is generally that the new mortgage rate should be at least 75 basis points lower.
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
The real divide happens during refinancing, when unhurried homeowners get to choose how hard they look for a deal.
From The Wall Street Journal ● Jun. 26, 2026
The number of car owners refinancing has nearly doubled over that time to about 111,000 in the first quarter of this year.
From The Wall Street Journal ● Jun. 24, 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 Ford, Henry
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.
