Meaning of the word refinance in English

What does refinance mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

refinance

US /ˌriːˈfaɪ.næns/
UK /ˌriːˈfaɪ.næns/

Verb

to replace an existing debt with a new one, often with more favorable terms or a lower interest rate

Example:
We decided to refinance our mortgage to get a lower interest rate.
Many homeowners choose to refinance when interest rates drop.