Refinancing

Rate and Term Refinance Explained

The simplest refi: keep the balance, change the rate or term.

4 min readUpdated 2026Refinancing

What it is

A rate-and-term refi pays off your existing mortgage with a new one at a different rate, term, or both. No new cash comes back to you at closing.

When it fits

Great for lowering payments, shortening the payoff timeline, or getting off an adjustable-rate mortgage.

Key takeaways

  • No cash back — just a better structure.
  • Ideal for improving rate or term.

Frequently asked questions

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