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:
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
Shortly after its IPO in June, SpaceX also issued its first-ever bonds, selling $25 billion of debt in large part to refinance an earlier loan from banks.
From The Wall Street Journal ● Jul. 7, 2026
You can only exit a reverse mortgage or HESAs through a home sale, refinance or buyout, or contractual settlement.
From MarketWatch ● Jun. 29, 2026
If you are looking to buy a home or refinance one, you should begin by setting aside any assumptions and commit instead to shopping around.
From MarketWatch ● Jun. 23, 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
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
Owners who had refinanced at pandemic-era lows wouldn’t move; would-be buyers couldn’t afford what was for sale.
From The Wall Street Journal ● May 14, 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
Also, roughly 40% of the companies in the Russell 2000 are unprofitable, making them even more vulnerable to refinancing risk.
From MarketWatch ● Jun. 30, 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
“We intend to use the net proceeds from this offering for general corporate purposes, including repayment and refinancing of outstanding notes,” an Nvidia spokesperson said in an emailed statement.
From Barron's ● Jun. 15, 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 Truman, Harry S.
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.
