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To repay a loan by taking out another loan. Refinancing can allow one to secure a lower interest rate; for example, one can replace a loan at an 8.5% rate with one at 5.5%. In the case of a balloon loan, refinancing can repay the principal if one does not have sufficient funds to do it; that is, if one has made only interest payments over the life of the loan and has not saved the principal amount when the loan comes due, refinancing can prevent bankruptcy. There are two main drawbacks to refinancing. First, there is no certainty that one will be approved for it. One thus takes a risk every time one decides to make only interest payments on a loan or mortgage. Secondly, refinancing generally resets the repayment period; that is, if one refinances six years into a 10 year loan, the one generally repays the new loan over 10 years instead of the remaining four.


Shorthand for refinance.

References in periodicals archive ?
i]} are exact zeros of p(z), REFI is guaranteed to produce the optimal approximations to each [[xi].
Although Crigler is taking a wait-and-see attitude toward HARP-driven refis, he could find the purchase market strengthening in 2012.
The project REFI writing guidelines for vehicle maintenance is a project for procurement: an IT system for the creation and editing of technical documents, management: the current versions of all documentation, and secure processing and: Steps to change the documents and their contents.
EU: ECB RATE ANNOUNCEMENT The refi rate is expected to be held while the focus remains on supporting the banks and pressuring the government to deliver structural reforms and fiscal discipline for banks.
At most any other point in history, rates this low would send homes flying off the market and would jam the phone lines with refi requests.
We have institutional buyers looking to make steady cash returns instead of local entrepreneurs able to do a cash out refi in five years or a flip in three.
The Danish Issuing Institute's decision not to change the rate reduced the base rate differential between themselves and the Refi to 0.
Near-term inflation looks to have peaked, and looks set to prompt the ECB to cut the refi rate to 1% by January.
Central bank officials have repeatedly said that rates are appropriate for now and in our central scenario we see the refi rate remaining at 1.