Define: Refinance

Business, Legal & Accounting Glossary

Definition: Refinance



What is the dictionary definition of Refinance?

Dictionary Definition


finance To renew the terms of a loan.


Advertisement



Full Definition of Refinance


A refinance refers to the process of paying off an existing loan, with the proceeds from a new loan. Borrowers often seek to refinance in order to secure a lower interest rate or to lower a monthly payment. The most common refinance type is a mortgage refinance. In addition to lowering rates and/or the associated payment, a mortgage refinance often reduces the term of a loan and/or allows a borrower to switch between a variable and fixed rate. A refinance often consists of the same size loan, using the same property as collateral. In order to determine if a refinance is beneficial, the savings in interest must be compared to the fees associated with the refinance process. An example of a refinance fee is a prepayment fee.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/refinance/
Modern Language Association (MLA):
Refinance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 06, 2020 https://payrollheaven.com/define/refinance/.
Chicago Manual of Style (CMS):
Refinance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/refinance/ (accessed: April 06, 2020).
American Psychological Association (APA):
Refinance. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/refinance/

Definition Sources


Definitions for Refinance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020