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:
The deal combines credit and equity to provide capital for the New York Yankees’ growth and to refinance existing debt.
From The Wall Street Journal ● Aug. 11, 2026
That would make it more difficult to buy, as well as refinance an existing loan.
From The Wall Street Journal ● Aug. 9, 2026
Check current auto-loan refinance rates to see if you can save.
From The Wall Street Journal ● Jul. 31, 2026
Why don’t they refinance the loan, since the 30-year rate averaged 6.55% as of mid-July?
From MarketWatch ● Jul. 22, 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
During the 2000s housing bubble, he deftly tracked where the money went when a mortgage was issued and a home sold or refinanced – but paid little attention to who was issuing the mortgage.
From The Wall Street Journal ● Jun. 22, 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
If that backdrop reverses, business models built on refinancing ever-cheaper debt begin to look much more fragile, according to Clark.
From MarketWatch ● Jul. 24, 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
If you are buying a home or refinancing one, shop around for a loan.
From MarketWatch ● Jun. 26, 2026
In addition to refinancing debt, SpaceX could choose to borrow for new projects—something that might try investors’ patience coming just weeks after its IPO.
From The Wall Street Journal ● Jun. 22, 2026
A considerable portion of these obligations are short-term in character and hence will require refinancing in the coming months and years.
From State of the Union Address by Harry S. Truman
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.
