Rate And Term Refinance
The refinancing of an existing mortgage for the purpose of changing the interest and/or term of a mortgage without advancing new money on the loan. This differs from a cash-out refinance, in which new money is advanced on the loan. Rate and term refinances can carry lower interest rates than cash-out refinances. Investopedia Says:
Rate and term refinancing activity is driven primarily by a drop in interest rates, while cash-out refinance activity is driven by increasing home values. Because there are pros and cons associated with a rate and term and cash-out refinancing, the borrower must weigh the pros and cons of each before making any final decisions. Related Terms:
Energy Improvement Mortgage
Mortgage Originator
No Cash-Out Refinance
Primary Mortgage Market
Refinance
Refinance Wave
Roll In |