Rate-and-Term Refinance

Replace your current mortgage with a new one at a lower rate or different term. No cash out — pure rate and payment improvement.

Lower rate

Goal

No

Cash Out

Usually

Appraisal

Written by Renzo Johnson, Licensed MLO · NMLS #PENDING · Last updated: February 2026

Key Features

  • Lower your interest rate
  • Change from 30-year to 15-year (or vice versa)
  • Switch from ARM to fixed rate
  • Appraisal required for most programs
  • No cash out (or limited cash-back at closing)
  • Must demonstrate net tangible benefit

Who Is This For?

  • Homeowners whose current rate is 1%+ above market
  • ARM borrowers converting to fixed before adjustment
  • Homeowners shortening to 15-year to build equity faster

Florida-Specific Considerations

  • Florida doc stamp tax on new mortgage amount
  • Intangible tax exempt on existing loan balance (pay only on increase)
  • Homestead exemption unaffected by refinance

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