Rate and Term Refi

A rate and term refinance allows homeowners to replace their existing mortgage with a new loan that has a lower interest rate, different loan term, or both. This type of refinance can help reduce monthly payments, pay off the loan faster, or switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan for more stability. Unlike a cash-out refinance, a rate and term refinance does not provide cash back to the borrower—its primary goal is to improve the loan’s terms.

Homeowners can refinance through Conventional, FHA, VA, and USDA loan programs, each with different eligibility requirements. VA Interest Rate Reduction Refinance Loans (VA IRRRL) and FHA Streamline Refinances offer simplified processes for eligible borrowers, often requiring minimal documentation and no home appraisal. These programs are designed to make refinancing easier and more affordable.

If you want to lower your interest rate, reduce your loan term, or switch to a more stable mortgage, a rate and term refinance could be the right solution. With today’s changing market, refinancing at the right time can lead to long-term savings and better financial flexibility.

Disclaimer: Loan product guidelines are subject to change. Contact your Caritas Mortgage loan officer for the most up-to-date information.