refinance

[ree-fi-nans, ree-fahy-nans]

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.

Word History and Origins

Origin of refinance¹

First recorded in 1895–1900; re- + finance

Example Sentences

That rocketed annual inflation into triple digits and led to the crumbling of confidence among domestic and foreign investors, thus complicating the government’s ability to refinance its maturing debt obligations.

From Salon

Instead, when the mortgage is refinanced or the house is sold, the borrower pays back the original loan, plus 20% of its increase in value.

From Los Angeles Times

The takeover by the Friedkin Group has been transformational, with Everton's crippling debts turned into equity, repaid or refinanced on more favourable terms.

From BBC

She and her husband, Shawn DeRemer, who leads an anesthesia company in Portland, refinanced their longtime Oregon home in January 2021.

From Salon

Elevated interest rates recently have weighed on prices by making it difficult for building owners to refinance debt, pushing them into quick sales or foreclosures.

From Los Angeles Times

When To Use

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.