Rate and Term Refinance: Lower Your Rate or Change Your Loan
A rate and term refinance allows you to replace your current mortgage with a new one—without taking cash out—so you can improve your loan terms.
What Is a Rate and Term Refinance?
A rate and term refinance replaces your existing mortgage with a new loan that has different terms—typically a lower interest rate, a different loan length, or both.
- Lower their interest rate
- Reduce their monthly payment
- Switch from an adjustable-rate to a fixed-rate mortgage
- Shorten or extend their loan term
How Does a Rate & Term Refinance Work?
A rate and term refinance works by paying off your current mortgage and replacing it with a new one.
- Connect with your FBKC loan officer
- Review your current mortgage and goals
- Submit your refinance application
- Provide documentation and complete appraisal (if required)
- Close on your new loan with updated terms
Your new loan replaces your old one, and you begin making payments based on the updated rate and term.
Benefits of a Rate and Term Refinance
Your FBKC loan officer can help you evaluate which options may make the most sense.
Lower interest rate
Reduced monthly payment
Ability to pay off your loan faster
Opportunity to better align your mortgage with your financial goals
Rate & Term Refinance vs Cash-Out Refinance: What’s the Difference?
Rate and Term Refinance
- No cash taken out
- Focused on improving loan terms
- Typically lower risk
Cash-Out Refinance
- Converts equity into cash
- Increases loan balance
- Used for large expenses
How to Get Started
Getting started with FBKC Mortgage is simple:
- Connect with a dedicated FBKC loan officer
- Review your current loan and goals
- Explore available refinance options
- Submit your application
- Provide all required documentation
Frequently Asked Questions About Rate & Term Refinancing
With reliable and easy to understand answers.
What is a rate and term refinance?
A rate and term refinance replaces your existing mortgage with a new one that has a different interest rate, loan term, or both, without taking cash out.
How is a rate and term refinance different from a cash-out refinance?
A rate and term refinance focuses on improving your loan terms, while a cash-out refinance allows you to take equity out of your home as cash.
Can I lower my monthly payment with a rate and term refinance?
Yes. Lowering your interest rate or extending your loan term may reduce your monthly payment.
Does a rate and term refinance require an appraisal?
In many cases, yes. Your FBKC loan officer will let you know if an appraisal is required for your refinance.
What credit score is needed to refinance?
Requirements vary, but stronger credit may help you qualify for better rates and terms through FBKC Mortgage.
How long does a refinance take?
Most refinances take a few weeks from application to closing, depending on documentation and appraisal timelines.
Is refinancing worth it if rates only drop a little?
Even a small rate reduction can lead to savings over time. Your FBKC loan officer can help calculate potential savings.
Does a Rate & Term Refinance Affect My Credit?
Yes. Applying for a refinance typically includes a credit check, and your new loan will impact your credit profile over time.
Your FBKC loan officer can help you understand how refinancing may affect your credit.