refinance

[ ree-fi-nans, ree-fahy-nans ]

verb (used with object)

, re·fi·nanced, re·fi·nanc·ing.

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.

verb (used without object)

, re·fi·nanced, re·fi·nanc·ing.

1. to arrange new financing for something.

Word History and Origins

Origin of refinance¹

First recorded in 1895–1900; re- + finance

Example Sentences

If you have private student loans, you may want to explore refinancing them to get a lower interest rate.

From Salon

“Interest rates have been very painful across the board, whether you’re trying to refinance or you have a loan coming due or if you’re currently building a hotel,” he said.

From Los Angeles Times

It was also pinning its hopes on getting government loan guarantee that would allow refinancing with more conventional lenders.

From BBC

The company was increasingly reliant on high-interest borrowings from a specialist US lender, Riverstone, while telling shareholders that it was expecting to get a government guarantee that would allow refinancing with more conventional lenders.

From BBC

Instead, when the mortgage is refinanced or the house is sold again, the borrower pays back the original the loan, plus 20% of the increase in the home’s value since the borrower purchased it.

From Los Angeles Times

More About Refinance

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.

Examples of refinance in a sentence

“[R]efinancing your loans is only useful if you can qualify for a lower interest rate.”
—”What Is The Best Way To Pay Off Debt?” Rocket Loans. Retrieved March 15, 2020.

“A cash-out refinance means that you refinance your mortgage for more than you owe and take the difference in cash.”
—”Kitchen Remodel Financing: 7 Steps For Everything You Need To Know” Rocket Loans. Retrieved March 15, 2020.

“You can adjust certain terms of a loan when you refinance, but two factors don’t change: You won’t eliminate your original loan balance, and your collateral must remain in place.”

—”What Is Refinancing?” the balance. Retrieved August 26, 2020.

Other terms connected with the topic of refinance

• loan
• mortgage
• flip
• cash-out refinance