Rate-and-Term Refinance

A rate-and-term refinance replaces an existing mortgage with a new one, improving the interest rate or loan term for better savings.

Get Started

What Is a Rate-and-Term Refinance?

A rate-and-term refinance is the replacement of an existing mortgage with another mortgage under different terms. This common type of refinance allows you to potentially lower your monthly payments, lower your rate, or even reduce or remove PMI (private mortgage insurance).

Benefits of a Rate-and-Term Refinance

A rate-and-term refinance is ideal for homeowners focused on lowering their payments, securing better loan terms, or paying off their home faster without taking out additional cash.

Lower Interest Rate – Reduces the cost of borrowing
Lower Monthly Payments – Can improve cash flow
Shorter Loan Term – Helps pay off the mortgage faster
Fixed vs. Adjustable Rate – Provides rate stability if switching from an ARM
Remove PMI – Eliminates extra costs if home equity reaches 20%

Rate-and-Term Refinance Options

Discover flexible loan options for a rate-and-term refinance.

Conventional

Obtain a better rate or shorter loan term, while maintaining the original loan structure.

FHA

Lower your rising mortgage payments with a government-insured fixed-rate loan.

VA

Refinance up to 100% of your home or buy a new home with no down payment and never pay monthly insurance.

Fixed-Rate

Get predictable monthly payments and plan to stay in the home for the long term.

Adjustable-Rate

Lower your initial interest rate and are planning to sell or refinance before the rate adjusts.

Get Started

How to Refinance a House

Our refinance process has been carefully designed, with you in mind. Making it easier, faster, and strategically smarter.

Get Started

Rate-and-Term Refinance FAQ

How do I know if refinancing is right for me?

If your current mortgage rate is significantly higher than current market rates, or if your financial situation has improved, refinancing could be a good option. Additionally, if you want to pay off your loan faster or reduce your monthly payments, refinancing may help.

Do I need an appraisal for a rate-and-term refinance?

In some cases, a home appraisal may not be required, especially for certain streamline refinances (like FHA or VA loans). However, traditional refinances often require an appraisal to determine your home’s current value.

What is the difference between a rate-and-term refinance and a cash-out refinance?

A rate-and-term refinance only changes the interest rate or term of your loan without taking out additional cash. A cash-out refinance, on the other hand, allows you to take equity out of your home in cash while refinancing your mortgage.

What are the typical costs associated with refinancing?

Refinancing typically involves closing costs, which may include fees for application, underwriting, appraisal, title search, and more. These costs can range from 2% to 5% of the loan amount.

Can I refinance if I have little equity in my home?

Yes, if you have a government-backed loan like an FHA or VA loan, you may be eligible for a streamline refinance, which typically doesn’t require much equity. For conventional loans, lenders may have more stringent equity requirements.

Mortgage Lending Simplified

Download the free RWM Home Loans Fluid Mobile App today and get started on your journey to homeownership.

SECURE DOCUMENT SCANNER
FAST & EASY PROCESS
REAL TIME LOAN UPDATES
Constant communication of needs and issues. Drafting of key documents in timely way. Friendly interactions and commitment to service.
Noah B.
Good communication, great staff and high level of professionalism.
James G.Company Name
The team was tremendously attentive to our every need and only had our goals and best interests in mind. Would work with them again anytime.
Brian S.Company Name
Everyone on the team was really professional, helpful and dedicated to make the whole process as smooth as possible. Whenever we had a question or concern, we always received a prompt reply.
Andriry K.Company Name
Extremely responsive, website was brilliant, clear list of what we needed and stayed on us until it was complete, knew who to send us to for tax transfer from our previous house. We will definitely refer our friends and family to RWM.
Kirk C.Company Name
The communication on the process and the ability to sign documents electronically was a life saver. The availability and speed of answers were great.
Angelina B.Company Name
You helped me understand all my options, which made me feel more confident in the decision I had to make. You were on top of everything that had to be done and kept things moving in an efficient way.
Julie M.Company Name
The team was easy to work with and willing to answer all of my questions. They even worked with a notary in North Carolina so I didn’t miss my vacation.
Melody T.Company Name
Everything was fully explained from the beginning, and I felt like we worked as a team when we went step by step in our journey of getting financed for our first home.
Ana E.Company Name
Buying a house can be overwhelming but when you have someone you trust it makes it so much easier. We felt assured that we were in good hands and that we would get to the finish line during the escrow process.
Cassandra C.Company Name

4.9

348 Reviews

4.96

7522 Reviews

5.0

166 Reviews

Scroll to Top