Meaning & use
refinance
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Meanings
verbtransitive or intransitive
To replace an existing loan, especially a mortgage, with a new one that has different terms.
Grammar: Takes an object (refinance a mortgage) or stands alone (they refinanced last year).
Patterns
- refinance something
- refinance at a lower rate
They refinanced their mortgage when interest rates fell.
We plan to refinance next year if we can get a lower rate.
She refinanced her car loan to cut the monthly payment.
verbtransitivebusiness
To give a business or project fresh funding, usually by raising new money to pay off old debts.
Grammar: Used with a company or its debt as the object.
Patterns
- refinance a company
- refinance debt
The airline refinanced its debt to avoid bankruptcy.
Investors agreed to refinance the failing factory.
Word forms
| third person singular | refinances |
|---|---|
| past tense | refinanced |
| past participle | refinanced |
| -ing form | refinancing |
Common combinations
- refinance a mortgage
- Many owners refinance a mortgage when rates drop.
- refinance a loan
- He refinanced a loan to pay for the repairs.
- refinance your home
- They refinanced their home to cover tuition.
- refinance debt
- The government refinanced its debt at lower cost.
- refinance at a lower rate
- We refinanced at a lower rate and saved money every month.
Synonyms and how they differ
- remortgage
- Remortgage is the British word and applies only to home loans, so it is narrower than refinance.
- restructure
- Restructure means changing the terms of debt, often with the same lender, while refinance means taking out a new loan.
- consolidate
- Consolidate means combining several debts into one, which may or may not involve better terms.
Word family
Commonly confused: refinance or reimburse?
refinance vs reimburse
Reimburse means to pay back money someone spent, while refinance means to replace a loan with another.
Practice
When rates fell, the couple decided to ___ their mortgage and lower their payments.
Choose one answer.
Refinance means to replace a loan with a new one on better terms. Refund and reimburse involve giving back money, but not replacing a loan.
Make it your own
Write a sentence using “refinance”, then check it and compare it with the examples above.