Meaning & use

refinance

verb·Academic

To pay off an existing loan by taking out a new one, usually with better terms.

See it in a sentence

They refinanced their mortgage to take advantage of lower interest rates.

The company refinanced its debt to extend the repayment period by five years.

A note on using this word

People typically refinance to lower monthly payments, reduce interest rates, or change the length of a loan.

Words with a similar meaning

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