What Is a Rate and Term Refinance?
This differs from a cash-out refinance, in which new money is advanced on the loan and the mortgage applicant receives cash at the closing in addition to their new loan. Usually a rate-and-term refinance is opinionated to lower interest rates than cash-out refinances.
Also known as a “no cash-out refinance. A rate-and-term mortgage lenders provide a new mortgage loan to refinance change the interest rate, the term or both the rate and the term of an existing mortgage without cashing out.