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

By 2035, when her oldest is college-age, she expects the property will have appreciated in value, and she can do a cash-out refinance to get the money to pay for tuition.

From The Wall Street Journal

If they shrink, the thousands of companies they lend to could find it more difficult and expensive to refinance their debts.

From The Wall Street Journal

The jump in rates effectively closes a brief window of opportunity for homeowners interested in refinancing their home loans.

From MarketWatch

Businesses this year have issued a record amount of debt to fund digital infrastructure, acquisitions and refinancing.

From The Wall Street Journal

It also plans to refinance its senior secured term loan, use its commodity-hedging program and evaluate shareholder returns shortly after beginning first sales.

From The Wall Street Journal