Definition

To obtain a new loan to pay off an existing loan, often to get better terms or a lower interest rate.

Example

They decided to refinance their home to take advantage of lower interest rates.

Tense Forms

Conversation

I’ve been thinking about how to refinance my mortgage for a better rate.

That’s a smart move! It can really save you money.

Yeah, I heard it’s a good way to lower monthly payments.

Absolutely! You should definitely look into it.

Synonyms & Antonyms

Root Explanation

Refinance → It is formed from "re-" (meaning again) and "finance" (from Latin "financia", meaning to pay or settle a debt). The word "refinance" means to pay or settle a debt again, typically under different terms.

Memory Tip

Think of 'again' ('re-') when you are 'settling a debt' ('finance') — that's why refinance means to settle a debt again.

Visually Confused Words