Refinance Meaning and Definition
Refinance
Pronunciation
/riˈfeɪnseɪns/
Part of Speech
Noun
Definition
The act of paying off an existing debt or loan by obtaining a new loan or credit agreement with a higher value and using the proceeds to pay off the existing debt, often accompanied by a change in interest rates or repayment terms.
Examples
- A homeowner refinanced their mortgage to take advantage of lower interest rates.
- A company refinanced its debt to reduce its monthly payments.
Synonyms
- Purchase
- Take out
Antonyms
- Absorb
- Consolidate
Etymology
The word “refinance” comes from the Latin “refinare,” meaning “to refine” or “to purify,” and the suffix “-financer,” which is derived from the Latin “finis,” meaning “end” or “boundary.”
Additional Information
Refinancing can be a useful strategy for individuals or businesses looking to reduce their debts, take advantage of better interest rates, or change the terms of their loans. However, it is essential to carefully consider the costs and consequences of refinancing before making a decision.
There are different types of refinancing options available, such as rate-and-term refinancing, cash-out refinancing, and refinance-and-renew refinancing.
Usage Notes
Refinance is typically used as a noun or a verb, depending on the context. As a noun, it refers to the process of refinancing a loan or debt. As a verb, it means to pay off an existing debt or loan by obtaining a new loan or credit agreement.
Cultural References
Refinancing has been featured in several films and TV shows, including “The Big Short” (2015) and “Billions” (2016). It has also been referenced in popular music and literature.
Idiomatic Expressions or Phrases
“Refinance the debt” and “Refinance the mortgage” are common idiomatic expressions that refer to the process of paying off an existing debt or loan by obtaining a new loan or credit agreement.
Related Words or Phrases
Words or phrases closely related to “refinance” include “mortgage,” “loans,” “debts,” “interest rates,” and “credit agreements.”
Collocations
Common collocations with “refinance” include “to refinance a mortgage,” “to refinance a loan,” and “to refinance debts.”
Frequency of Use
The frequency of the word “refinance” has increased in recent years due to the growing importance of personal finance and debt management.
Common Misspellings
Common misspellings of “refinance” include “refenanise” and “refenans.”