Rate and Term Refinance
A rate and term refinance will replace (payoff) your exiting mortgage and replace it with a new mortgage. People most often seek a rate and term refinance to lower their interest rate and monthly mortgage payment. However, you can also take advantage of favorable market conditions to reduce the time you have left on your mortgage, with a better rate and a shorter repayment term.
Every scenario is unique so take the time to find out what is right for you. Please note that a rate and term refinance cannot disburse cash to the borrower.