A rate-and-term refinance allows you to adjust your loan’s length, payment amount, interest rate, or any combination of these. This can help you secure a lower rate, reduce your principal balance with additional cash, or pay off your mortgage faster.
When your mortgage works for you, life feels lighter. With the right refinance, you can open the door to new possibilities — from freeing up cash to paying off debt faster.
Let’s break down how this works. A refinance means taking out a new loan—usually with better terms—to pay off your existing one. Unlike a cash-out refinance, which gives you access to your home’s equity, a rate-and-term refinance simply updates your rate, your term, or both. If you’re interested in tapping into your equity instead, here’s how a cash-out refinance works.
A rate-and-term refinance lets you adjust your loan’s interest rate, term, or both without taking cash out. For example, if you’ve been paying on a 30-year mortgage for five years and rates drop, refinancing could help you secure a lower rate or shorten your term.
We’ll start by reviewing your current loan — your interest rate, balance, home value and equity — and then talk through your financial goals, the funds you’re bringing in and the best options for your new loan (15-year, 20-year, 30-year, etc.). Finally, we’ll help you understand your potential savings and calculate how long it would take for those savings to outweigh the cost of refinancing so you can clearly see if it makes sense for you.
Thinking this might be the right step? We’re ready to support you. Wherever you are as a homeowner, our loan officers can work side by side with you to find the loan that’s right for you. Let’s connect today!
