Rate/Term Refinance

Adjust Your Mortgage Without Taking Significant Cash Out

A rate/term refinance replaces your existing mortgage with a new loan designed to change the interest rate, loan term, or both.

This type of refinance may help eligible homeowners lower a monthly payment, shorten or extend the loan term, switch loan structures, or better align the mortgage with current financial goals.

Rate/term refinance eligibility, interest rates, loan terms, closing costs, appraisal requirements, and available savings vary by lender and borrower scenario.

How a Rate/Term Refinance Works

Current Loan Review

The lender reviews your existing mortgage, current rate, loan balance, property, and refinancing goals.

Borrower Qualification

Your credit, income, debts, assets, and overall financial profile are reviewed to determine which refinance options may be available.

New Loan Structure

The new mortgage is structured around the approved interest rate, loan term, balance, and program requirements.

Closing & Loan Replacement

Once the refinance closes, the new loan replaces the existing mortgage according to the approved loan terms.

Rate/Term Refinance Requirements to Expect

Credit & Income Review

The lender evaluates your credit profile, income, debts, assets, and overall ability to repay the new mortgage.

Property & Valuation Review

The property may require an appraisal or other valuation, depending on the loan program and lender guidelines.

Loan Purpose & Structure

The transaction must meet applicable rate/term refinance guidelines, including limits on cash received at closing.

Closing Costs & Break-Even

Closing costs, interest rate, loan term, monthly payment, and expected time in the home should be considered when evaluating whether refinancing makes financial sense.