refinance

American  

[ree-fi-nans, ree-fahy-nans] / ˌri fɪˈnæns, riˈfaɪ næns /

verb (used with object)

refinanced, refinancing

1. to finance again.

2. 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.

3. 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.

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verb (used without object)

refinanced, refinancing

1. to arrange new financing for something.

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

First recorded in 1895–1900; re- + finance

Example Sentences

Most of Flagstar’s multifamily mortgages mature over the next few years, at which point they will likely need to be refinanced.

From The Wall Street Journal

If refinancing for a lower interest rate is an option, it could be an appealing tactic as it does not require the lifestyle compromises that other spending adjustments do.

From MarketWatch

If refinancing for a lower interest rate is an option, it could be an appealing tactic as it does not require the lifestyle compromises that other spending adjustments do.

From MarketWatch

Before the fires, the value of their property had appreciated to $1.2 million, though Ford still owes nearly $500,000 on the house after his father refinanced several times.

From The Wall Street Journal

Because credit systems track individual borrowing rather than household wealth, this lack of history can make it difficult to refinance a mortgage or qualify for a credit card.

From The Wall Street Journal