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:
And if you have been waiting to refinance or lock a mortgage rate, know that the long end of the bond market sets those rates, and the long end is the part under strain.
From MarketWatch ● Jul. 28, 2026
“If we refinance now, we would have to stay in the home for at least five to eight years for the break-even point to even make sense a little bit,” Markowicz said.
From MarketWatch ● Jul. 22, 2026
You can also make extra mortgage payments when it makes sense or refinance if interest rates decline in the future.
From MarketWatch ● Jul. 20, 2026
Changes in mortgage rates can make a borrower more or less likely to refinance, altering the projected duration of the loan’s payouts to investors.
From The Wall Street Journal ● Jun. 29, 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
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
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
The arrears will eventually have to be settled—they are added to the mortgage balance in a junior lien that is repaid once the loan matures, is refinanced or the home is sold.
From The Wall Street Journal ● May 3, 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
Markowicz said that the cost of refinancing outweighed the benefit for now, particularly because they plan to move to a bigger house in the near future.
From MarketWatch ● Jul. 22, 2026
WSJ | Buy Side: Student-loan refinancing might save you money, but you sacrifice federal borrower protections and potential loan forgiveness.
From The Wall Street Journal ● Jul. 17, 2026
If you are buying a home or refinancing one, shop around for a loan.
From MarketWatch ● Jun. 26, 2026
The real divide happens during refinancing, when unhurried homeowners get to choose how hard they look for a deal.
From The Wall Street Journal ● Jun. 26, 2026
The process of "refinancing" was simply the game of sending good money after bad.
From My Life and Work by Ford, Henry
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.
