refinance
Americanverb (used with object)
-
to finance again.
-
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.
-
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:
Real-estate giant Brookfield chose to give back the property rather than refinance its debt.
From The Wall Street Journal ● Nov. 4, 2026
Late last year, Clearlake tried to refinance $2.2 billion in loans coming due in December 2027 and 2028 for symplr, a healthcare software company it bought in 2018.
From The Wall Street Journal ● Oct. 27, 2026
“You had an incredible market to refinance in, but we don’t anymore and there’s nothing in my mind that says rates are going down for the foreseeable future.”
From The Wall Street Journal ● Oct. 27, 2026
She also says that if she owns the house, she can refinance or sell it if care gets too expensive.
From MarketWatch ● Oct. 12, 2026
It happened because after they bought the first one, and its value rose, the lenders came and suggested they refinance and take out $250,000—which they used to buy another.
From "The Big Short" by Michael Lewis
She and her husband bought a house, but their mortgage jumped when they refinanced, and they’re now struggling with daycare, car payments and other expenses.
From MarketWatch ● Oct. 8, 2026
Many Americans refinanced homes at ultralow rates, which increased household liquidity and fueled consumption.
From The Wall Street Journal ● Aug. 23, 2026
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
The SpaceX IPO could lead to 8% of America’s current-account deficit being refinanced in a single day.
From MarketWatch ● Jun. 10, 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
For example, someone refinancing their mortgage or buying a property for the first time could face higher mortgage rates.
From BBC ● Oct. 29, 2026
"With interest rates much higher in many global regions than they were in 2021, refinancing risk will become more visible as loans originated in 2020-22 approach maturity," it said in its latest Private Credit Quarterly.
From Barron's ● Oct. 29, 2026
That’s the highest special-servicing rate since February 2013—and a sign that those loans were facing problems such as missed payments or difficulty refinancing at maturity.
From The Wall Street Journal ● Oct. 6, 2026
Utilities and real estate sectors face higher refinancing costs and stronger competition from bonds, she notes.
From The Wall Street Journal ● Oct. 5, 2026
A considerable portion of these obligations are short-term in character and hence will require refinancing in the coming months and years.
From State of the Union Address by Harry S. Truman
Random Word
Spin the wheel and learn a new word!
Get a wordDefinitions 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.
