refinance

IPA/ˌriːˈfaɪnæns/
KK[rˌifənˈæns]IPA/ˌriːˈfaɪnæns/

refinance — verb

  • refinancepresent simple I / you / we / they
  • refinanceshe / she / it
  • refinancedpast simple
  • refinancing-ing form

1. to replace an existing loan or mortgage with a new one, often to get better inte

1.verbtransitive / intransitiveB2
Definition

to replace an existing loan or mortgage with a new one, often to get better interest rates, lower regular payments, or borrow additional money

Example

Asher refinanced his home to take advantage of the lower interest rates.

refinance + noun phrase (what is refinanced)

Pim decided to refinance after his bank offered a better deal on a shorter loan term.

intransitive use: refinance (no object)

Common collocations
  • refinance a mortgage
  • refinance a loan
  • refinance debt
  • refinance at a lower rate
  • refinance with a different bank
Synonyms
  • renegotiate

    broader — can apply to any agreement (contracts, salaries, leases), not just loans

  • restructure

    more formal and often implies major changes to repayment terms rather than simply getting a new loan

Grammar Patterns

refinance + noun phrase (a mortgage, a loan, debt)

refinance (intransitive, no object)

Usage Note

Unlike 'renew', which can apply to many types of agreements, 'refinance' is used only for loans, mortgages, and debt — never for things like insurance policies or subscriptions.

Common Mistakes

I refinanced my car insurance to get a lower rate.
I refinanced my car loan to get a lower rate.
'refinance' applies to loans and debts, not to insurance policies or subscriptions.

Word family

Synonym discussion

Sense: verb/1

All three involve changing the terms of an existing financial agreement. 'Refinance' is specific to loans and mortgages: you take out a new loan to pay off the old one. 'Renegotiate' is broader — you can renegotiate a contract, a salary, or a lease without borrowing new money. 'Restructure' is the most formal and often appears in corporate or debt-relief contexts; it implies a major reshaping of repayment schedules and conditions. For everyday borrowing, 'refinance' is the natural choice: 'We refinanced our mortgage when rates dropped.' For a pay raise, you would 'renegotiate your salary', not refinance it.

refinance ↗renegotiaterestructure

Common collocations

Nouns

Adverbs

Phrases

  • at a lower rate
  • with a different lender

Prepositions

Etymology

LatinFrenchEnglish

Formed in English from the prefix 're-' (meaning 'again') and the verb 'finance'. 'Finance' itself comes from Middle English, borrowed from Old French, and ultimately from Latin 'finis' meaning 'end' — in medieval times, 'financer' meant to settle a debt or end an obligation. So etymologically, refinancing is 'financing again' to settle an old debt with new money.