refinance

American  

[ree-fi-nans, ree-fahy-nans] / ˌri fɪˈnæns, riˈfaɪ næns /

verb (used with object)

refinanced, refinancing

1. to finance again.

2. 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.

3. 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.

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verb (used without object)

refinanced, refinancing

1. to arrange new financing for something.

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

First recorded in 1895–1900; re- + finance

Example Sentences

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

They often aggressively seek to refinance customers at lower rates, because doing so represents another transaction.

From The Wall Street Journal • Feb. 27, 2026

Shares of banks have recently outperformed their nonbank mortgage rivals, even against the backdrop of falling mortgage rates, which ought to be a big boost to refinance activity.

From The Wall Street Journal • Feb. 27, 2026

It happened because after they bought the first one, and its value rose, the lenders came and suggested they refinance and take out $250,000—which they used to buy another.

From "The Big Short" by Michael Lewis