Rate and Term Refinance

Rate and Term Refinance

 

The process of paying off one loan with the proceeds from a new loan, using the same property as security. Cash received by the borrower at closing may not exceed $2,000 (not allowed in Texas). Status varies depending upon State Law. The purpose is, as the name implies, to reduce the interest rate, payment, and/or overall term of the mortgage.

 

Advantages:

 

    • Reduction of the interest rate, payment, and/or overall term of the mortgage
    • Limit of $2,000 cash (varies depending upon State Law)

 

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