What Is a Rate-and-Term Refinance?
A rate-and-term refinance replaces your current mortgage with a new one that changes the interest rate, loan term, or both. Unlike a cash-out refinance, it does not provide cash from your home’s equity—it simply improves your existing loan.
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
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.
Change Your Loan Type
A refinance may also allow you to:
Who Is a Good Candidate?
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
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.
