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:
That means the issuers are giving themselves an out if they can refinance their debt at lower rates.
From The Wall Street Journal ● Oct. 8, 2026
That means trimming exposure to the companies most dependent on cheap capital: small-capitalization companies that are highly leveraged, unprofitable growth stocks and speculative businesses that constantly need to refinance.
From MarketWatch ● Oct. 1, 2026
Landlords must refinance at borrowing rates that are roughly double the levels of five years ago, when many of the original loans were made.
From The Wall Street Journal ● Sep. 21, 2026
But higher rates could affect those looking to secure a new mortgage or refinance.
From BBC ● Sep. 16, 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
She and her husband bought a house, but their mortgage jumped when they refinanced, and they’re now struggling with daycare, car payments and other expenses.
From MarketWatch ● Oct. 8, 2026
The SpaceX IPO could lead to 8% of America’s current-account deficit being refinanced in a single day.
From MarketWatch ● Jun. 10, 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
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
If a cycle of higher refinancing costs and insufficient fiscal adjustment undermines investor confidence, gold could benefit as an asset that doesn’t depend on a government’s repayment promise.
From The Wall Street Journal ● Oct. 6, 2026
Homeowners might use AI to monitor rates, for instance, and automatically prepare the necessary documentation for refinancing.
From The Wall Street Journal ● Sep. 29, 2026
Higher mortgage rates have prevented many aspiring home buyers from entering the housing market and stopped existing homeowners from refinancing to less-expensive mortgages.
From MarketWatch ● Sep. 16, 2026
It has also raised corporate borrowing costs and made refinancing maturing U.S. debt more expensive.
From MarketWatch ● Sep. 16, 2026
The S&L's were rendered unable to further support the price of real estate by rolling over old credits, refinancing residential equity, and underwriting development projects.
From Crime and Corruption by Samuel Vaknin
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.
