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:
Compounding the problem, France must refinance a mountain of bonds it issued during the era of ultra-low interest rates in the coming years.
From The Wall Street Journal ● Oct. 1, 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
But higher rates could affect those looking to secure a new mortgage or refinance.
From BBC ● Sep. 16, 2026
Home buyers also won’t have an opportunity to refinance anytime soon with rates likely to stay elevated, economists say.
From The Wall Street Journal ● Sep. 15, 2026
The mobile home buyer, unlike the ordinary home buyer, couldn’t expect to refinance in two years and take money out.
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
Around $6.7 trillion of this debt, including $1.2 trillion of non-investment-grade debt and $330 billion of private-credit loans, must be refinanced by 2028 at a higher cost than the current low rates.
From MarketWatch ● Sep. 23, 2026
The average borrower who refinanced saved more than 2.2 percentage points on an interest rate last quarter.
From The Wall Street Journal ● Jun. 26, 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
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
But smaller companies who need fresh financing to keep expanding that extra interest can eat up cash flow, force spending cuts, delay hiring or eventually make refinancing impossible.
From MarketWatch ● Oct. 1, 2026
Bassman said a few years ago most mortgages were hovering at low interest rates, with valuations deeply discounted as refinancing looked less likely.
From MarketWatch ● Sep. 18, 2026
United also took on an additional £91.92m when refinancing bonds in June and are yet to outline how they will fund a proposed new stadium expected to cost more than £2bn.
From BBC ● Sep. 5, 2026
Yields remain attractive, while stronger corporate balance sheets and a more supportive refinancing backdrop should help keep defaults contained.
From The Wall Street Journal ● Sep. 3, 2026
These bonds represent a convenient method of investment for small savers, and also an anti-inflationary method of refinancing.
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.
