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Rate & Term Refinance: Lower Your Monthly Payment & Lock in a Better Rate
We work with 100+ lenders to match you with the refinance offer that actually improves your position, not just replaces your loan.
- No impact on credit
- Takes 1 min
Is Rate & Term Refi the Right Option for You?
A rate-and-term refinance is designed for homeowners who want a better mortgage, not more debt.
A rate-and-term refinance may be a good fit if you:
- feel like your current rate is too high
- want to reduce your monthly payment
- want to switch from an adjustable-rate mortgage (ARM) to a fixed rate
- want to shorten or extend your loan term
- want to remove mortgage insurance
- are not looking to pull cash out
How Rate-and-Term Refinance Works
A rate-and-term refinance replaces your current mortgage with a new one — without increasing your loan balance to take cash out.
Instead of borrowing more, you’re improving your existing loan:
- Lower rate → reduce monthly payment or total interest paid
- New term → adjust payoff timeline (e.g. 30-year to 15-year)
- Loan type change → FHA to conventional, ARM to fixed
If your current mortgage no longer fits your financial situation, this allows you to reset it properly.
Rate-and-Term Refinance Requirements
Lenders typically review:
- Credit Score: Typically 600+ (better pricing with higher scores)
- Home Equity: Often ~5–10% minimum depending on program
- Loan-to-Value (LTV): Impacts eligibility and pricing
- Income and Employment: Must support the new loan
- Debt-to-Income Ratio (DTI): Typically up to ~45–50%, higher in strong scenarios
- Mortgage Payment History: On-time payments strengthen approval
- Property Type: Primary, second homes, and some investment properties
A Better Refinance Experience: Serving Homeowners Since 1996.
Most Refinances Replace Your Loan. This One Improves It.
Other lenders/Banks
Other
Lenders shopped
100+
Limited to 1
Non QM Loans
Yes
Limited
Minimum credit score
550
640+
DTI Requirements
55%
43%
Fast-track Underwriting
Yes
No
Approval Rate
93%
Lower
Closing time
7-21 days
30 days
Dedicated Loan Officer
Yes
No
Availability
24/7
Limited
Average response time
<1hour
<1 day
Today's live rates
See live lender rates from 100+ wholesale lenders. Customize your details to see your best available options today.
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30 years of 5-star mortgage service
For over 30 years, we've built our reputation on excellent service and a mortgage experience that puts borrowers first.
Frequently asked questions
What is a rate-and-term refinance?
A rate-and-term refinance replaces your current mortgage with a new loan that improves your rate, term, or structure without taking cash out.
How much equity do you need?
In some cases, as little as 5% equity may be sufficient depending on the program, but more equity typically gives better options and pricing.
Will my monthly payment go down?
Often yes, especially if you secure a lower rate or extend your loan term. The exact impact depends on your loan structure.
Can I remove mortgage insurance?
Yes, in eligible scenarios. If your loan-to-value is low enough, refinancing into a conventional loan may remove PMI.
Is refinancing worth it if rates drop slightly?
It depends on your loan size, timeline, and costs. Even small rate improvements can lead to meaningful long-term savings.
How long does it take?
Most rate-and-term refinances close within 10–21 days, depending on the file.
Start Your Pre Approval
Start your pre-approval to view instant live rates and see how much you could save with a better loan structure.
- No impact on credit
- Takes 1 min
- No docs needed
