Definition: To renew the terms of a loan.

Alright class, settle down and let’s take a look! Today we’re tackling a word that might sound a little grand, “Refinance,” understand? Let's lend it a hand! The dictionary says it’s “to renew the terms of a loan,” you see, But let’s break it down for clarity, just for you and me. Think of it like this: You borrowed some dough, A mortgage or a loan, you needed to grow. Now interest rates might rise, or your credit might improve, And refinancing offers a chance to move! It’s essentially changing the deal, that's the key, For a lower rate, or a different decree. You're taking out a new loan, replacing the old one with grace, To make your payments easier, at a faster pace! So, refinancing means to swap it all around, A better deal for you, on solid ground. Do you have any questions? Don’t be shy, let's explore, Refinancing – now you know what it’s for!