Refinance home loan Meaning and Definition

Pronunciation

🔊

Part of Speech

Noun

Definition

A financial transaction in which a borrower replaces an existing mortgage with a new mortgage, often with a lower interest rate, but at a cost of closing fees and other expenses.

Examples

• The couple refinanced their home loan to take advantage of lower interest rates.
• Refinancing a mortgage can help homeowners save money on mortgage payments.

Synonyms

• Mortgage refinance
• Lending adjustment

Etymology

The term “refinance” comes from the Latin “re” meaning “again” and “financia” meaning “of finance”.

Usage Notes

When using the term “refinance home loan,” it is essential to consider the borrower’s financial situation, credit score, and current interest rates before making a decision.

Cultural References

Refinancing a home loan is often a crucial aspect of personal finance advice, as seen in popular culture, such as in TV shows and movies that focus on financial literacy.

Idiomatic Expressions or Phrases

• “Refinance and rescue” refers to the process of refinancing a mortgage to save money on mortgage payments.

Related Words or Phrases

Collocations

• Refinance home loan and save money on mortgage payments

Frequency of Use

The term “refinance home loan” is often used in financial news and articles, as well as in personal finance advice and guides.

Common Misspellings

Refinence, Refenace, Rfinace