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:
Fewer investors mean it would be harder for fund managers to raise money, shrinking the supply of capital to refinance existing corporate loans when they come due.
From The Wall Street Journal ● Aug. 10, 2026
That would make it more difficult to buy, as well as refinance an existing loan.
From The Wall Street Journal ● Aug. 9, 2026
“Application volume for both refinance and purchase loans declined for the week, and are now running behind last year’s pace,” Fratantoni said, “indicating that higher mortgage rates have weakened overall demand.”
From MarketWatch ● Aug. 5, 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
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
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
To buy his former wife’s portion of the house, Sutton refinanced the mortgage and owes $300,000 on an adjustable-rate mortgage that’s now charging 6.75%.
From The Wall Street Journal ● Apr. 25, 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
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
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
An Nvidia spokesperson told MarketWatch that the proceeds will be used for general corporate purposes, including the repayment and refinancing of outstanding notes.
From MarketWatch ● Jun. 15, 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
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.
