Definition
The financial equivalent of asking for a do-over on your loan terms, usually when interest rates drop or your credit score finally recovers from that regrettable phase. Homeowners refinance to lower monthly payments or cash out equity, though the process involves enough paperwork to deforest a small country. It's basically breaking up with your current lender to find a better deal, except with closing costs.
Example Usage
They decided to refinance their mortgage when rates dropped to 3%, saving them $400 per month despite the refinancing fees.
Source: Common finance and real estate terminology
Related Terms
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See “refinance” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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