Rate & term refinance — lower your rate or shorten your loan
A rate and term refinance replaces your existing mortgage with a new one that has a better interest rate, a different loan term, or both — without taking any cash out. It's the most common type of refinance and often the smartest move when rates drop, your credit improves, or you're ready to stop paying PMI. We're licensed in Michigan, Florida, Arizona, and Texas and shop multiple lenders to find you the best rate available.
What it can do for you
Lower your rate & payment
If rates have dropped since you got your loan — or your credit has improved — you may qualify for a significantly lower rate and a smaller monthly payment.
Shorten your loan term
Moving from a 30-year to a 15- or 20-year mortgage lets you pay off your home faster and save tens of thousands in total interest — often with a lower rate too.
Switch from ARM to fixed
If you're on an adjustable-rate mortgage and want predictable, stable payments for the long haul, a rate and term refinance into a fixed rate is the cleanest solution.
Remove PMI
If your home's value has risen enough to bring your loan-to-value ratio below 80%, refinancing can eliminate your private mortgage insurance payment entirely.
The break-even calculation
Before you refinance, the most important number to know is your break-even point — how many months it takes for your monthly savings to recover your closing costs. We run this for every client upfront so you can make a confident decision.
If you plan to stay in the home longer than your break-even point, the refinance makes financial sense. Want to skip upfront costs entirely? Ask us about our no closing cost refinance — we roll the costs into your rate instead.
Frequently asked questions
How much can I save with a rate & term refinance?
It depends on your current rate, loan balance, and what you qualify for today. Even a 0.5% rate reduction can mean hundreds of dollars per month on a larger loan. The best way to know is to let us run the actual numbers for your situation — no obligation.
Does a rate & term refinance reset my loan term?
Only if you choose a new 30-year term. You can refinance into a 15, 20, or 25-year term to avoid resetting the clock — and in many cases a shorter term comes with an even lower rate.
Will I need a new appraisal?
In most cases, yes — though some loan types and lenders offer appraisal waivers depending on your loan-to-value ratio and credit profile. We'll let you know upfront whether an appraisal is required for your scenario.
How long does a rate & term refinance take?
Most refinances close in 20–30 days. We move efficiently and keep you informed at every step — no black holes, no surprises.
Does it matter which state I'm in?
Closing costs, title customs, and transfer tax rules vary by state — but the mechanics of a rate and term refinance work the same whether you're in Michigan, Florida, Arizona, or Texas. We'll walk you through exactly what your refinance will cost in your specific market before you ever commit.
No closing cost refinance
Want to refinance without paying out of pocket? We can roll closing costs into your rate — no cash needed at closing.
Learn how it works →Rate Watch system
Not ready today? We'll monitor rates and reach out when refinancing makes financial sense for your situation.
Sign up for Rate Watch →Ready to see your new rate?
No cost, no obligation — we'll show you your new rate, estimated payment, break-even point, and total savings in plain English.
