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:
Most companies refinance large obligations 18 to 24 months in advance as a precaution, whittling down the amount of debt coming due in that time frame.
From The Wall Street Journal ● Oct. 27, 2026
“You had an incredible market to refinance in, but we don’t anymore and there’s nothing in my mind that says rates are going down for the foreseeable future.”
From The Wall Street Journal ● Oct. 27, 2026
The longer the companies go unsold, the more urgent it becomes to refinance their debt.
From The Wall Street Journal ● Oct. 27, 2026
“A lot of these companies are borrowing relatively short, but you can’t refinance it at 15%,” said David Royal, chief financial and investment officer at Thrivent.
From MarketWatch ● Oct. 14, 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
That is because most 30-year mortgages last around 10 years before being refinanced or exited through a sale.
From The Wall Street Journal ● Sep. 16, 2026
Many Americans refinanced homes at ultralow rates, which increased household liquidity and fueled consumption.
From The Wall Street Journal ● Aug. 23, 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
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
For example, someone refinancing their mortgage or buying a property for the first time could face higher mortgage rates.
From BBC ● Oct. 29, 2026
"With interest rates much higher in many global regions than they were in 2021, refinancing risk will become more visible as loans originated in 2020-22 approach maturity," it said in its latest Private Credit Quarterly.
From Barron's ● Oct. 29, 2026
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
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
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
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