A better rate or a shorter payoff. You choose.
Rate-and-term refinancing lets you restructure your mortgage without touching your equity. Lower your payment, shorten your term, or lock in a fixed rate.
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NMLS #2620605
Equal Housing Lender
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Get pre-qualified without a hard inquiry
A team behind you, one officer to call
Licensed guidance when you are ready
Direct access to your officer
Current rate above today’s market rates
Shorten term, pay off home faster
Is this loan right for you?
A rate-and-term refinance replaces your existing mortgage with a new loan that has a different interest rate, loan term, or both. Unlike a cash-out refinance, you are not taking money out of your equity. The goal is to improve your loan structure, whether that means lowering your monthly payment, shortening your payoff timeline, or switching from an adjustable rate to a fixed rate.
- Direct access to your officer
- Current rate above today’s market rates
- Shorten term, pay off home faster
- Switch ARM to fixed-rate stability
- Drop FHA MI with conventional refi
- Credit improved since your original loan
- Plan to stay past refinance break-even
Key benefits.
Shorten your loan term to build equity faster and pay less total interest
Switch from adjustable to fixed rate for payment stability
Remove FHA mortgage insurance by refinancing into a conventional loan at 20% equity
No cash taken out, equity stays intact
Tradeoffs to understand.
- Closing costs apply, typically 2% to 5% of the loan amount
- Break-even timeline must be considered. If you move before recouping costs, refinancing may not benefit you
- Extending your term to lower payments means paying more interest over the life of the loan
- A new appraisal is typically required
- Your credit, income, and debt will be fully re-evaluated at current lender standards
Compare your options.
| Feature | Rate & Term Refinance | Cash-Out Refinance |
|---|---|---|
| Purpose | Improve rate or term | Access equity as cash |
| Loan balance | Stays same or decreases | Increases |
| Monthly payment | Usually decreases | May increase |
| Equity impact | Preserved or grows | Reduced |
| Closing costs | Yes | Yes |
| Best for | Lowering cost or term | Accessing equity for a purpose |
Purpose
- Rate & Term Refinance
- Improve rate or term
- Cash-Out Refinance
- Access equity as cash
Loan balance
- Rate & Term Refinance
- Stays same or decreases
- Cash-Out Refinance
- Increases
Monthly payment
- Rate & Term Refinance
- Usually decreases
- Cash-Out Refinance
- May increase
Equity impact
- Rate & Term Refinance
- Preserved or grows
- Cash-Out Refinance
- Reduced
Closing costs
- Rate & Term Refinance
- Yes
- Cash-Out Refinance
- Yes
Best for
- Rate & Term Refinance
- Lowering cost or term
- Cash-Out Refinance
- Accessing equity for a purpose
What happens next
Calculate your break-even point before committing. Closing costs divided by monthly savings equals the months needed to benefit.
If you are removing FHA mortgage insurance, confirm your current equity with an appraisal estimate before applying.
After refinancing to a lower rate, consider paying extra toward principal to build equity faster.
If rates drop further after your refinance, a second refinance may be worth evaluating depending on your break-even timeline.
Keep exploring
Explore related paths
All refinance options
Compare rate-and-term, cash-out, and home equity paths for your goals.
Browse refinance options →Refinance questions
Break-even timing, equity access, and what to expect when you refinance.
Browse refinance FAQ →Common questions, plain answers.
Calculate your break-even point. Divide your total closing costs by your monthly savings. If the result is fewer months than you plan to stay in the home, refinancing likely makes financial sense.
Questions about rates or payment?
See how much a better rate could save you. No credit pull to start.
No credit pull to get started. We compare your options and explain the tradeoffs.
5.0 Google Rating
Verified borrower feedback on Google
NMLS #2620605
Equal Housing Lender
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