Why Refinance Rate & Term
Lower Your Rate
If rates have dropped since you bought or last refinanced, a rate & term refi locks in your savings permanently.
Reduce Your Payment
A lower rate directly reduces your monthly payment — freeing up cash flow every single month.
Shorten Your Term
Refinance from 30 to 15 or 20 years and pay off your home years sooner, often with little payment change.
Remove Mortgage Insurance
If your home has appreciated and you have 20%+ equity, refinancing to conventional removes PMI or FHA MIP.
Keep All Your Equity
Unlike a cash-out refi, a rate & term refi doesn't increase your loan balance — your equity stays intact.
Change Loan Type
Move from FHA to conventional, ARM to fixed, or any other loan feature without taking cash out.
Rate & Term Refinance Requirements
- ✓Credit Score: 620+ for conventional; 580+ for FHA streamline
- ✓Equity: Typically 5–20% equity depending on loan type and program
- ✓Income: Verified employment and income; 2 years of history preferred
- ✓Payment History: On-time payments typically required for best programs
- ✓Net Tangible Benefit: New loan must meaningfully improve your loan terms
- ✓Closing Costs: Can often be rolled into the new loan or offset by a slightly higher rate
Rate & Term Refi FAQ
How much equity do I need to refinance?
Requirements vary by loan type. Conventional rate & term refis typically require 5–20% equity. FHA and VA streamline programs have minimal equity requirements and often skip the full appraisal. We'll tell you exactly what you need based on your current loan.
Can I roll closing costs into the new loan?
Yes — in most cases, closing costs can be rolled into the new loan balance or covered by accepting a slightly higher rate (a "no-cost" refinance). We'll show you both options with exact numbers so you can choose based on how long you plan to stay.
How do I know if the refi makes financial sense?
The key metric is break-even: how many months until your monthly savings offset the closing costs. If you plan to stay past the break-even point, the refi pays off. We'll calculate this exactly for your scenario.
Can I switch from FHA to conventional with a rate & term refi?
Yes — if you now have 20%+ equity, refinancing from FHA to conventional removes the FHA MIP permanently. This is one of the most valuable refinances for FHA borrowers who've seen their home appreciate.
Other Refinance Options
Explore My Rate & Term Refi Options →
Takes 2 minutes · No credit pull · No obligation