refinance
verb
, (ˌ)rē-ˈfī-ˌnan(t)s, ˌrē-(ˌ)fī-ˈnan(t)s\
Definition of refinance
Examples of refinance in a Sentence
Recent Examples on the Web
When a lien is placed on a property, the owner can’t sell, refinance or transfer title of their home without first paying off the lien amount. — Martin E. Comas, orlandosentinel.com, "Seminole weighs amnesty program to give incentive to code-enforcement scofflaws," 26 Aug. 2019 Tottenham Hotspur have refinanced more than £400m of bank debt after building their new stadium, helping to lift some pressure on their previous plan to repay their lenders. — SI.com, "Tottenham Refinance More Than £400m of Debt to Help Lift Pressure on Stadium Payments," 22 Aug. 2019 CrossHarbor refinanced the construction loan on the project with money from one of its senior debt income funds. — Steve Brown, Dallas News, "New Dallas residential tower lands $95 million loan," 27 June 2019 Her answer to college affordability isn’t free tuition but rather a student loan refinancing proposal called the Red Act. — Tara Golshan, Vox, "Amy Klobuchar’s 2020 presidential campaign and policy positions, explained," 26 June 2019 Higher home values have allowed many owners to refinance or sell their properties when they are threatened with foreclosure. — Steve Brown, Dallas News, "Home foreclosures still falling in D-FW, U.S.," 8 Aug. 2019 For consumers who are confident about their jobs, now remains a good time to refinance debt and take on major purchases. — Susan Tompor, Detroit Free Press, "How you can benefit from an unexpected shift in interest rates," 3 July 2019 With the shift in the loan market, anyone looking to buy a car or refinance a loan needs smart strategies. — Washington Post, "Car buyers’ best cost-saving move: shop for a loan first," 6 June 2019 And Homayoun Zadeh, an associate professor of dentistry at USC, was even named as one of the parents, having refinanced his home to pay Singer to get his daughter a spot. — Vogue, "USC Is Preventing Kids Associated With the College Admissions Scandal From Registering For Classes," 19 Mar. 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'refinance.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for refinance
refinance
verbFinancial Definition of refinance
How It Works
Financing involves borrowing a specific amount of money over a length of time at an agreed-upon interest rate. Payments on the debt are divided between interest and principal. If circumstances change, for example, the length of time needed to repay the debt is longer and the lender agrees, the loan may be refinanced, extending the term and lowering the period payments (because they are extended over a longer period of time.) If interest rates change, the debt may be refinanced using a lower interest rate.
For example, the $150,000 loan below is shown with a term of 15 years at 8% per year. By year 5, the market interest rate drops to 5%. When the loan is refinanced over the balance of the term, for example, the savings in principal and interest payments on the loan will be over 32,000.
Refinancing may also convert an adjustable rate mortgage to a fix rate mortgage, reducing the interest rate risk to the borrower.
Why It Matters
Refinancing may be restricted on debts containing "call provisions," requiring a penalty payment in the event of a refinancing. In addition, a refinancing usually requires a closing and transaction fee that may be expensive. As a result, it is important to calculate the present value (the value in today's dollars) of the savings and compare it to the closing costs of the refinancing.
Source: Investing Answers
refinance
verb
English Language Learners Definition of refinance
See the full definition for refinance in the English Language Learners Dictionary
refinance
transitive verb
\
Legal Definition of refinance
(Entry 1 of 2)
refinance
nounLegal Definition of refinance (Entry 2 of 2)
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