Rate/Term Refinance Loan
You have the option to modify either your interest rate or loan term through a rate and term refinance. When interest rates decrease, it's advisable to explore the possibility of obtaining a rate and term refinance loan in order to potentially lower your interest rate or shorten the remaining duration of your mortgage. This refinancing method applies to both Conventional and FHA loans.
Why a Rate/Term Refinance Loan?
Better Interest Rate
Through a rate and term refinance, you can benefit from decreased interest rates. This refinancing option involves replacing your existing loan with a new mortgage loan, guaranteeing that you secure the most favorable interest rate accessible to you.
New Mortgage Repayment Schedule
A rate and term refinance loan enables you to negotiate and modify the term of your mortgage loan. You have the flexibility to either extend or shorten the duration of your mortgage, based on your needs and preferences.
Lower Monthly Payments
By essentially initiating a new mortgage, a rate and term refinance will extend your loan term. However, as a result, your monthly payments will be reduced.
Years off Your Mortgage
With this refinance loan, you may be able to take several years off their mortgage term by negotiating for a 15 year mortgage.
Steps to a Rate/Term Refinance Loan:
01 Get Pre-Approved.
Our online application can help you receive your pre-approval letter quickly. Plus, you can upload all required documents straight into the app to save you time and energy.