Refinancing: meaning, definitions and examples
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refinancing
[rɪˈfaɪnənˌsɪŋ ]
Definition
financial process
Refinancing is the process of revising a payment schedule for repaying debt. This often involves obtaining a new loan to pay off the original loan, typically to secure better interest rates or terms. Homeowners often refinance their mortgages to take advantage of lower rates or to access home equity.
Synonyms
reloaning, remortgaging, restructuring.
Examples of usage
- Many homeowners are considering refinancing their mortgages.
- Refinancing can save you money on interest payments.
- After reviewing her finances, she decided that refinancing was the best option.
- He opted for refinancing to manage his student loan debt more effectively.
Interesting Facts
Etymology
- The word comes from 'refine', meaning to improve, and 'finance', meaning to deal with money.
- Originally associated with improving methods of funding, the term has evolved to mean adjusting existing loans.
History
- Refinancing became popular in the early 20th century as more people began taking out mortgages to buy homes.
- During the Great Depression, many homeowners refinanced to avoid foreclosure, leading to changes in lending practices.
Economics
- Interest rates play a significant role; lower rates can make refinancing attractive, saving money over the life of a loan.
- Governments can influence refinancing availability through policies that affect consumer credit and economic stability.
Pop Culture
- Movies and TV shows often depict characters refinancing homes as a way to solve financial problems or achieve dreams.
- The concept of refinancing is frequently discussed in personal finance programs and blogs, emphasizing financial literacy.
Psychology
- People often feel anxious about refinancing due to the complexities of loans and financial decisions.
- Understanding the benefits can alleviate this anxiety, as refinancing can lead to reduced debt load and increased financial freedom.
Translations
Translations of the word "refinancing" in other languages:
🇵🇹 refinanciamento
🇮🇳 पुनर्वित्तन
🇩🇪 Refinanzierung
🇮🇩 refinancing
🇺🇦 рефінансування
🇵🇱 refinansowanie
🇯🇵 借り換え
🇫🇷 refinancement
🇪🇸 refinanciación
🇹🇷 yeniden finansman
🇰🇷 재융자
🇸🇦 إعادة التمويل
🇨🇿 refinancování
🇸🇰 refinancovanie
🇨🇳 再融资
🇸🇮 refinanciranje
🇮🇸 endurfjármögnun
🇰🇿 қайта қаржыландыру
🇬🇪 გადახედვა
🇦🇿 yenidən maliyyələşdirmə
🇲🇽 refinanciamiento