Mortgage refinance Meaning and Definition
Mortgage Refinance
Pronunciation
/ˈmɔr.gɪdʒ.riːˈfaɪn/
Part of Speech
Noun
Definition
A process of paying off an existing mortgage loan by obtaining a new loan and using the proceeds to pay off the old loan, often with a different interest rate, payment schedule, or loan term.
Examples
- The couple decided to refinance their mortgage to take advantage of lower interest rates.
- Mortgage refinancing can help homeowners adjust their monthly payments.
Synonyms
- Mortgage modification
- Bankruptcy
Antonyms
- Mortgage origination
- New loan
Etymology
The word “Mortgage” comes from the Old French “mort gage,” meaning “dead pledge,” and the Latin “mortuum,” meaning “dead.” The term “Refinance” comes from the Latin “reficere,” meaning “to renew.” Mortgage refinancing has been used as a financial strategy since the 1930s.
Usage Notes
Mortgage refinancing is typically done to take advantage of better interest rates, consolidate debt, or switch from an adjustable-rate to a fixed-rate mortgage. It’s essential to carefully evaluate the terms of the new loan and consider consulting a financial advisor before making a decision.
Cultural References
Mortgage refinancing has been a popular topic in financial media and has been discussed in numerous articles, podcasts, and TV shows.
Idiomatic Expressions or Phrases
“Underwater mortgage” refers to a situation where the outstanding mortgage balance is greater than the value of the property.
Related Words or Phrases
Mortgage, loan, interest rate, payment schedule, loan term, financial advisor
Collocations
Mortgage refinancing and interest rate, mortgage refinancing and financial advisor, mortgage refinancing and property value
Frequency of Use
Mortgage refinancing is a common financial practice, with millions of homeowners refinancing their mortgages every year.
Common Misspellings
Mortgag refinance, Mortgage refinancee, Mortage refinance