Definition, synonyms and related words
One or more loans or other borrowings that repay and replace previous financings.
"The company is pursuing refinancing to pay off its high-interest construction loan with a new, longer-term mortgage."
In plain English: Refinancing is when you replace an old loan with a new one to get better terms, usually by paying off the first debt and starting fresh under different conditions.
"The couple decided on refinancing to lower their monthly mortgage payments."
Usage: Refinancing involves taking out new debt to pay off an existing loan, often at better terms or lower interest rates. This process is common when homeowners seek reduced monthly payments or borrowers want to consolidate multiple debts into a single obligation.
present participle of refinance
"The bank is refinancing his mortgage at a lower interest rate to reduce his monthly payments."
In plain English: Refinancing means getting a new loan to pay off an old one, usually because you can get better terms or lower interest rates.
"She is refinancing her mortgage to get a lower interest rate."