Rate-and-Term Refinance

A rate-and-term refinance changes the interest rate, the term—or both the rate and the term—of an existing mortgage without advancing new money. It is also known as a “no cash-out refinance.” This differs from a cash-out refinance, in which new money is advanced on the loan and the borrower receives cash at the closing in addition to their new loan. Rate-and-term refinances often carry lower interest rates than cash-out refinances.