# refinance

/ˈɹiˈfaɪˌnæns/ (US) · /ɹɪfaɪnˈæns/ (UK) · CEFR B2 · Verb

Source: https://englishreference.com/word/refinance
Updated: 2026-05-19

## Definition

to get a new loan to pay off an old one. You usually do this to get a lower interest rate or better terms on your mortgage.

For teachers: to replace an existing loan with a new one, typically to secure a lower interest rate or more favourable terms. Often used in the context of mortgages or business debt.

## Examples

- They decided to refinance their home to save money.
- After the interest rates dropped significantly, many homeowners chose to refinance their mortgages to reduce their monthly payments.
- The company's decision to refinance its debt was driven by the need to lower its overall interest burden and improve its credit rating before the end of the fiscal year.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.