Rate & Term Refinance
Lower your interest rate, shorten your loan term, or both — without taking any cash out of your home.
Down Payment
N/A (equity req'd)
Credit Score Min
620+
Loan Limits
Conforming limits apply
Best For
Homeowners wanting lower rate or term change
What is a rate & term refinance?
A rate and term refinance replaces your existing mortgage with a new loan that has a better interest rate, a different loan term, or both. Unlike a cash-out refinance, you're not borrowing additional money against your equity — the goal is purely to improve the terms of what you already owe.
The most common reason homeowners refinance is to reduce their interest rate. Even a small reduction — say, from 7.5% to 6.75% — can save tens of thousands of dollars over the life of the loan and meaningfully lower your monthly payment. When market rates drop, or when your credit score has improved significantly since you originally bought, a rate and term refinance can be a powerful financial move.
You might also refinance to change your loan term — for example, from a 30-year to a 15-year mortgage. A shorter term typically comes with a lower interest rate and dramatically less total interest paid, though your monthly payment will be higher. Alternatively, if your 15-year mortgage payment is straining your budget, refinancing to a 30-year can free up monthly cash flow. The right decision depends on your goals, and we'll model both scenarios for you.
Quick Take
- Lowers your interest rate or adjusts your loan term
- No cash taken out — purely structural improvement
- Can reduce monthly payment or pay off loan sooner
- Closing costs can usually be rolled into loan
Who should consider a rate & term refinance?
If your current mortgage rate is higher than what's available today, or if your financial goals have shifted since you bought your home, a rate and term refinance may be worth exploring. We'll run the numbers and tell you honestly whether it makes sense.
Rate-drop opportunity
Bought at a higher rate and want to take advantage of current market conditions.
ARM to fixed conversion
Financed with an adjustable-rate mortgage and want to lock in a stable fixed rate.
Accelerate payoff
Want to shorten your term and pay off your mortgage faster while saving on interest.
Improved credit profile
Your credit score has improved significantly since purchase, unlocking better rate options.
Remove PMI
Looking to refinance to a lower LTV to eliminate private mortgage insurance.
Shifting financial goals
Your priorities or financial situation have changed since your original purchase.
Key Benefits
Lower Monthly Payment
A lower interest rate directly reduces your principal and interest payment — potentially saving hundreds per month.
Pay Off Faster
Refinancing to a shorter term gets you to mortgage-free sooner and can save tens of thousands in interest over the life of the loan.
Reduce Total Interest Paid
Even a small rate reduction on a large loan balance can mean significant savings over 15–30 years of payments.
Requirements
Common questions about rate & term refinancing
Comparing your options?
These refinance options are worth comparing if you're also looking to access equity.
Let's see if a refinance makes sense for you.
We'll calculate your break-even point, model your options, and give you an honest recommendation. No pressure — just clarity. We average a 15-day clear-to-close when you're ready to move.
NMLS #1898199 · Austin Williams NMLS #885656 · Equal Housing Opportunity