HomeownershipHomebuying Glossary
Rate-and-Term Refinance
Refinancing only to change your interest rate or loan term, without taking out extra cash.
In plain English
A rate-and-term refinance replaces your existing mortgage with a new one for the same approximate balance, aimed purely at securing a lower rate, shorter term, or switching loan types — no cash back to you.
Why it matters
This is usually the simpler, cheaper refinance option if your only goal is a better rate rather than accessing equity.
Where you'll run into it
Guides and tools on TheBuyingPath that cover rate-and-term refinance in context.
Related terms
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