What Is a Rate-and-Term Refinance?
A rate-and-term refinance replaces your current mortgage with a new loan that changes the interest rate, loan term, or both, without providing cash from your home’s equity. Whether it benefits you depends on the new rate and term, closing costs, financed costs, how long you expect to keep the loan, and your financial goals.
Lower Your Interest Rate
Refinancing to a lower rate can reduce your monthly payment and the total interest paid over the life of your loan.
Lower Your Monthly Payment
You may lower your payment by securing a better rate, extending your loan term, or both—helping improve monthly cash flow.
Choose a Shorter Loan Term
Switching to a 15- or 20-year mortgage can help you pay off your home faster, build equity sooner, and save on long-term interest.
Choose a Longer Loan Term
Extending your loan term may reduce your monthly mortgage payment by spreading repayment over a longer period. However, a longer term may also increase the total interest paid over the life of the loan.
Change Your Loan Type
A refinance may also allow you to:
Who May Consider a Rate-and-Term Refinance?
This option may be right for homeowners who want to:
- Lower their interest rate
- Reduce monthly payments
- Pay off their mortgage sooner
- Stabilize payments with a fixed rate
- Eliminate mortgage insurance
- Improve their loan without taking cash out
Rate-and-Term Refinancing in Oregon & Washington
Homeowners throughout Oregon and Washington may consider a rate-and-term refinance when they want to change their mortgage rate, loan term, or loan type without taking significant cash out of their home equity.
Platinum Lending Solutions helps homeowners compare refinance options based on their current mortgage, financial qualifications, property, and refinancing goals.
Want to see if refinancing could lower your costs?
We’ll review your current mortgage and compare options to help you decide if a rate-and-term refinance makes sense.
