loans

refinancing

The process of replacing an existing loan with a new one, usually with better terms or a lower interest rate.

Example

"When interest rates dropped, she refinanced her mortgage to save $400 per month."

💡 Memory Tip

RE-financing — you REDO the FINANCING to get better terms.

Etymology

Re (again) + financing — financing something again with new terms.

Common Misspellings

refinacingrefinanceingrfinancingrefinanicing

Related Terms

mortgageinterest rateloanprincipal

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