Definition of "Refinance"

In banking, refinance means to change the maturity date, the interest rate, or the amount of existing debt. With bonds, it means to retire existing bonded debt by issuing new securities to reduce the interest rate, or to extend the maturity date, or both. With mortgages, it means to pay off an existing mortgage loan and replacing it with a new one, usually in a different amount or at a lower interest rate.