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:
Mishra thought the mortgage market in recent years had been pretty stable and knew he could always refinance.
From The Wall Street Journal ● Oct. 28, 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
“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
She also says that if she owns the house, she can refinance or sell it if care gets too expensive.
From MarketWatch ● Oct. 12, 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
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
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
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
It also expands a title-insurance waiver program in a bid to reduce refinancing costs.
From MarketWatch ● Oct. 26, 2026
“This will leave many of the more vulnerable reliant on extensions, payment-in-kind amendments costly refinancing or sponsor support,” says Moody’s.
From The Wall Street Journal ● Oct. 15, 2026
In the majority of cases the need of refinancing arises from bad management, and the effect of refinancing is simply to pay the poor managers to keep up their bad management a little longer.
From My Life and Work by Henry Ford
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