A rate-and-term refinance replaces your existing mortgage with a new one for roughly the same balance — no significant cash back — in exchange for better terms. It’s the classic refinance, and homeowners use it to lower their interest rate, cut their monthly payment, shorten the payoff timeline, switch from adjustable to fixed, or remove mortgage insurance after building 20% equity.
Good fit if: your remaining balance and your goals are clear: pay less interest overall, pay less per month, or finish sooner. Shortening from 30 to 15 years is the most powerful wealth move in this category — even at the same rate, the interest savings are dramatic — and I’ll model it at your actual balance so you can see the trade against the higher monthly payment.
Because there’s no cash-out, rate-and-term loans usually get better pricing than cash-out refinances, and because I’m a broker, I price yours across 240+ lenders the same day. Then comes the only verdict that matters: the break-even month versus how long you’ll keep the loan. I’ll show you that number before you sign anything — and Loan Factory’s $2,000 Best Price Guarantee stands behind the pricing (terms apply).
True Home Lending is operated by Navaneet Dutt, Mortgage Loan Originator, NMLS #2262708, with Loan Factory, NMLS #320841. All loans are subject to credit and property approval. Program availability, rates, terms, and conditions are subject to change without notice and may vary by state, lender, and borrower profile. Not all applicants will qualify. This content is for education only and is not a quote, a loan approval, or a commitment to lend. Equal Housing Opportunity.