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:
The deal combines credit and equity to provide capital for the New York Yankees’ growth and to refinance existing debt.
From The Wall Street Journal ● Aug. 11, 2026
You would have to sell the home, refinance or open a home-equity line of credit to release it again.
From MarketWatch ● Aug. 8, 2026
If you have excellent credit, now could be the time to refinance your auto loan.
From The Wall Street Journal ● Aug. 7, 2026
“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
One risk of betting against subprime loans was that, as long as house prices kept rising, borrowers were able to refinance, and pay off their old loans.
From "The Big Short" by Michael Lewis
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
Some of funds’ activity fees also can act to protect them from loans being repaid early to be refinanced at tighter spreads.
From The Wall Street Journal ● May 16, 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
The arrears will eventually have to be settled—they are added to the mortgage balance in a junior lien that is repaid once the loan matures, is refinanced or the home is sold.
From The Wall Street Journal ● May 3, 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 company is benefiting from revised Excelsior Nickel Cobalt project acquisition terms, planned downstream investments and a debt refinancing, says MS.
From The Wall Street Journal ● Aug. 5, 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
The offering is expected to be at least $20 billion, Bloomberg reported, with proceeds going toward refinancing a $20 billion bridge loan that matures in September 2027.
From MarketWatch ● Jun. 20, 2026
“We intend to use the net proceeds from this offering for general corporate purposes, including repayment and refinancing of outstanding notes,” an Nvidia spokesperson said in an emailed statement.
From Barron's ● Jun. 15, 2026
This makeshift of refinancing is a device of speculative financiers.
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.
