Recent Examples of refinance from the Web
In certain situations, refinancing the loans in your name is also feasible.
USA TODAY The lowest mortgage interest rates since November did little to encourage people to refinance their home loans or take out a new loan to buy a home.
Scott C. Cox, chairman of the Louisville Arena Authority, said their goal is to refinance the bonds this fall before interest rates increase.
Another option is refinancing your loans, wherein a student-loan lender buys your existing loans and gives you a new loan with a lower interest rate.
Since last year, Cox has been at the center of negotiations between the city, state and university on how to refinance the Yum Center's $690 million construction debt.
The net loss included a $6.3 million charge from refinancing debt.
Because of the way the debt was refinanced in recent years, the city's obligations increased sharply this year and will rise further next year.
If their company can’t find some new scheme for refinancing and redeveloping the property by then, Jared Kushner will have cost his family half a billion dollars.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'refinance.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of refinance
Financial Definition of REFINANCE
How It Works
Financing involves borrowing a specific amount of money over a length of time at an agreed-upon interest rate. Payments on the debt are divided between interest and principal. If circumstances change, for example, the length of time needed to repay the debt is longer and the lender agrees, the loan may be refinanced, extending the term and lowering the period payments (because they are extended over a longer period of time.) If interest rates change, the debt may be refinanced using a lower interest rate.
For example, the $150,000 loan below is shown with a term of 15 years at 8% per year. By year 5, the market interest rate drops to 5%. When the loan is refinanced over the balance of the term, for example, the savings in principal and interest payments on the loan will be over 32,000.
Refinancing may also convert an adjustable rate mortgage to a fix rate mortgage, reducing the interest rate risk to the borrower.
Why It Matters
Refinancing may be restricted on debts containing "call provisions," requiring a penalty payment in the event of a refinancing. In addition, a refinancing usually requires a closing and transaction fee that may be expensive. As a result, it is important to calculate the present value (the value in today's dollars) of the savings and compare it to the closing costs of the refinancing.
REFINANCE Defined for English Language Learners
Definition of refinance for English Language Learners
: to get a new loan to pay (an older debt) : to finance (something) again
legal Definition of refinance
- refinance a mortgage
Seen and Heard
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