A rate-and-term refinance replaces your existing mortgage with a new loan to change the interest rate, the loan term, or both — without pulling extra cash out beyond allowed closing costs. It is the classic lower-my-payment or shorten-my-term refinance.
You are refinancing the loan structure — not harvesting equity for other spending.
Move to a lower (or more stable) interest rate when market or credit conditions improve.
Switch between 30, 20, or 15-year terms to balance payment vs interest savings.
You generally cannot take large cash-out; small credits for costs may be allowed within guidelines.
Rate-and-term often allows higher loan-to-value than cash-out refinances.
Borrowers refinance to drop PMI/MIP or restructure insurance once equity improves.
Run the math on savings, break-even, and how long you plan to keep the home.
Rate-and-term rules are specific — these items are commonly treated as costs, not cash-out.
We focus on payment impact and break-even — not just the headline rate.
Step 1
Rate, balance, MI, and remaining term set the baseline.
Step 2
Compare 30-year vs shorter terms and with/without MI.
Step 3
Appraisal and equity determine whether PMI applies on the new loan.
Step 4
The new conventional loan pays off the old note at closing.
Related guides to help you compare options and move toward pre-approval.
When you need equity access instead of only rate or term changes.
Switching from FHA, VA, or another loan type.
How conventional mortgage insurance cancellation works.
Compare rate-and-term scenarios with Ryan or Steve.
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Essentially yes — the purpose is to change rate or term, not to extract large amounts of equity.
Often yes, if the final LTV still meets rate-and-term guidelines. We will show both roll-in and pay-upfront options.
If the new loan is above 80% LTV, conventional PMI may apply. At or below 80%, you may avoid it.
Cash-out lets you borrow above your payoff for other uses and usually has stricter LTV caps and pricing.
Send your current rate, balance, and goals — Ryan or Steve will show payment and break-even options side by side.