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.

---

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

For example, he was defrauded and had to refinance his house after losing money.

From MarketWatch

Easy, recurring savings can often be accessed by switching cell phone or internet plans or insurance companies, or by refinancing a car loan, he said.

From MarketWatch

And this all comes with an economic cost, as the negative wealth effect dampens consumer sentiment and rising stress at the margin of the mortgage market means increased delinquency rates and reduced refinancing options.

From The Wall Street Journal

Debt refinancing is nothing to take for granted.

From The Wall Street Journal

Mortgage loans have been performing well in recent years, given the massive refinancing boom during the pandemic.

From MarketWatch