Rate-and-Term Refinance
A rate-and-term refinance replaces your current mortgage with a new one — typically to lower your interest rate, reduce your monthly payment, or shorten your loan term (for example, moving from a 30-year to a 15-year loan) without changing your loan balance.
Cash-Out Refinance
A cash-out refinance replaces your mortgage with a larger loan based on your home's equity, and you pocket the difference in cash — often used for home improvements, debt consolidation, or other major expenses.
Is Refinancing Worth It?
The right answer depends on your break-even point: how long it takes your monthly savings to cover the closing costs of the new loan. It's not just a rate question — your timeline, how long you plan to stay in the home, and your goals all matter. Barry runs the actual numbers for your specific situation rather than a generic rule of thumb.
Who It's For
- Homeowners whose rate is meaningfully higher than current market rates
- Homeowners on an adjustable-rate mortgage (ARM) approaching an adjustment
- Homeowners who've built equity and want to access it for a specific goal
- Homeowners who want to shorten their loan term and pay less interest over time