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refinance
[ree-fi-nans, ree-fahy-nans]
verb (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)
to arrange new financing for something.
Word History and Origins
Origin of refinance1
Example Sentences
His explanation for this time frame is that it approximates the debt refinancing cycle because the weighted average maturity of that debt is just over five years.
Now, Americans are jumping on opportunities to refinance and save money on their monthly mortgage payments.
The Ann Arbor home was accurately described as Cook’s primary residence when she refinanced it in 2021, Lowell said, because she was still living there and employed by Michigan State University at the time.
“The transaction would avoid significant refinancing costs while meaningfully reducing leverage through the realization of synergies and lowering future refinancing risk.”
In recommending the offer to shareholders, the board of directors advised that any alternative attempt to refinance the debt-laden company would result in a lower valuation or nothing at all for investors.
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When To Use
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.
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