Investments glossary

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.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *