A Rate & Term Refinance is a mortgage refinancing option where the original loan amount does not change, but the interest rate and/or term of the loan changes.
People typically apply for a Rate & Term Refinance to either save money or build equity in their homes.
You can ve money through a Rate & Term Refinance when there is an opportunity to get a lower rate! That will help you save monesay each month when you make your mortgage payment.
Another reason why people apply for a Rate & Term Refinance is to start building equity in their homes.
If you have the extra cash each month and you plan on this home being your forever home, why not pay it off faster with a 15-year mortgage?
For more info, contact a HBLending Home Loan Expert.