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
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.
If they shrink, the thousands of companies they lend to could find it more difficult and expensive to refinance their debts.
From The Wall Street Journal • Mar. 27, 2026
Typically, when borrowers refinance, savings in the form of lower monthly mortgage payments often make their way back into the economy.
From MarketWatch • Mar. 25, 2026
Fears over AI could make it more difficult for software companies to refinance the upcoming debt.
From Barron's • Mar. 14, 2026
You might lose the stream of payments unless you are willing to refinance that customer at a lower rate when rates fall.
From The Wall Street Journal • Feb. 27, 2026
To them the default was a matter of indifference, as they kept none of the risk of the loan; the refinance was merely a chance to charge the borrower new fees.
From "The Big Short" by Michael Lewis
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.
