Rate Reduction Refinance
"Lower your rate. Lower your payment."
Reduce your interest rate, lower your monthly payment, or shorten your loan term. No cash out, just better terms.
Low to none
Min Down
620+
Min Credit
Up to 97% LTV
Max Loan
Is This Loan Right for You?
This Loan is Perfect If You...
- Your rate is 1%+ higher than current market rates
- Planning to stay in your home 3+ years
- Want to lower your monthly payment
- Looking to shorten your loan term (30 to 15 years)
- Ready to remove PMI (at 20%+ equity)
This Might NOT Be Right If...
- Planning to move within 1-2 years
- Your current rate is already competitive
- Need cash out for renovations or debt consolidation
- Limited equity in your home
How It Works
Your path to homeownership in just a few simple steps
Check Your Rate
Compare your current interest rate to today market rates to see if refinancing makes sense.
Calculate Savings
Use our refinance calculator to see your potential monthly and lifetime savings.
Break-Even Analysis
Determine how long it will take to recoup your closing costs through monthly savings.
Apply Online
Submit a simple application. Often using your existing documentation makes it even easier.
Check Your Rate
Compare your current interest rate to today market rates to see if refinancing makes sense.
Calculate Savings
Use our refinance calculator to see your potential monthly and lifetime savings.
Break-Even Analysis
Determine how long it will take to recoup your closing costs through monthly savings.
Apply Online
Submit a simple application. Often using your existing documentation makes it even easier.
Close & Save
Complete your refinance and start enjoying your new lower payment immediately.
When Does Refinancing Make Sense?
The break-even point tells you how long it takes for your monthly savings to cover the closing costs of refinancing.
The Formula
Break-Even = Closing Costs ÷ Monthly Savings
Example Calculation:
Closing Costs
$6,000
Monthly Savings
$200
Break-Even Point
30 months
(2.5 years)
The Rule of Thumb
If you plan to stay in your home longer than your break-even point, refinancing makes financial sense.
Savings Timeline
1 Year
Still recouping costs
Break-Even
You have covered closing costs
5 Years
$6,000 in savings
10 Years
$18,000 in savings
See How Much You Could Save
Your Current Mortgage
Your Potential Savings
Lifetime Savings
$70,441
✓ Refinancing makes sense for you!
Get Detailed Analysis →Frequently Asked Questions
Common questions about Rate Reduction Refinance
Last updated:
What is a rate and term refinance?
A rate and term refinance replaces your existing mortgage with a new loan that has better terms, typically a lower interest rate, different loan term, or both. Unlike a cash-out refinance, you do not receive any equity as cash.
How much does it cost to refinance?
Refinancing typically costs 2-3% of your loan amount in closing costs. For a $300,000 loan, expect $6,000-$9,000. Some lenders offer no-closing-cost options where costs are rolled into the loan or exchanged for a slightly higher rate.
When does refinancing make sense?
Refinancing makes sense when your monthly savings will exceed your closing costs before you plan to move. Calculate your break-even point: divide closing costs by monthly savings. If you will stay longer than that, refinancing is likely worthwhile.
- Yes! Many homeowners refinance from an adjustable-rate mortgage (ARM) to a fixed-rate loan for payment stability. This is especially popular when ARM rates are expected to rise or when you want predictable payments.
- Most refinances close in 30-45 days. The timeline includes application, appraisal, underwriting, and closing. Having your documents ready can help speed up the process.
- In most cases, yes. The lender needs to verify your home current value to determine your loan-to-value ratio. However, some streamline refinance programs (VA IRRRL, FHA Streamline) may waive the appraisal requirement.
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
See How Much You Could Save
Calculate your break-even point and start saving today.
Or call us directly: (757) 558-2603