Refinance Meaning: Definition, Examples, and Translations
๐ธ
refinance
[หriหหfaษชnรฆns ]
Definition
financial
To replace an existing loan with a new loan that has better terms, such as a lower interest rate or longer repayment period.
Synonyms
renew, restructure, revise, rework.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| refinance |
This term is best used when talking about obtaining a new loan to replace an existing one, typically to get better interest rates or terms.
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| restructure |
This term is appropriate for situations where there is a complete reorganization of a company's financial or operational setup, often to improve efficiency or address financial difficulties.
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| renew |
Use this word when discussing the process of making something valid again, especially contracts, subscriptions, or licenses.
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| revise |
This word is suitable when referring to changes or modifications made to documents, plans, or strategies to improve them.
|
| rework |
Use this word for making changes or improvements to existing content, products, or processes, usually because they need to be corrected or improved.
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Examples of usage
- Many homeowners choose to refinance their mortgages when interest rates drop.
- You may be able to save money by refinancing your student loans at a lower interest rate.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Economics
- Refinancing can help reduce monthly payments or the total interest paid over the life of a loan, potentially saving thousands of dollars.
- In times of lower interest rates, many homeowners choose to refinance to take advantage of better loan conditions.
Pop Culture
- In movies and TV shows, characters often refinance their homes as a plot point when they face financial troubles or want to fund a new venture.
- Financial advice shows frequently discuss refinancing as a smart strategy for homeowners to manage their finances.
Consumer Behavior
- People often choose to refinance for various reasons, including needing cash for home improvements or consolidating debt.
- Refinancing can be a topic of discussion among friends and family, as many share their experiences and advice on the best options.
Legal Aspects
- Refinancing might require new legal documents and can involve closing costs similar to those paid at the start of a mortgage.
- Some refinancing loans come with stricter terms and conditions, which borrowers need to understand fully before proceeding.
Origin of 'refinance'
Main points about word origin
- The prefix 're-' means to do something again, while 'finance' comes from the Old French 'financer', which relates to managing money.
- The term started gaining popularity in the late 20th century as people began to look for better loan options.
The term 'refinance' originated in the financial sector and gained popularity in the early 20th century. As the concept of managing debt and loans evolved, the practice of refinancing became a common strategy for individuals and businesses to improve their financial situations. Today, refinancing plays a significant role in the economy, allowing individuals to take advantage of better terms and conditions to reduce their financial burden.
See also: financial, financially, financier, financing, underfinance, underfinancing, unfinanced.