Rate & Term Refinance

Looking to reduce your monthly payment or lock in a lower rate—without taking cash out? A rate-and-term refinance lets you adjust your interest rate, loan term, or both while keeping your home equity intact. It’s a smart, streamlined way to realign your mortgage with your current financial goals.

Simplified Process

Rate-and-term refinancing often involves less paperwork than cash-out options—making the process faster and more efficient.

Lower Interest Rate

You could significantly reduce your interest rate—helping lower your monthly payment and total loan cost.

No Equity Withdrawal

Since you’re not cashing out, your home equity stays untouched—helping maintain long-term property wealth.

Flexible Loan Terms

Whether you want to pay off your mortgage faster or reduce your monthly commitment, you can choose a new term that fits your life now.

Current rate-and-term refinance options offer competitive rates for qualified borrowers, helping reduce monthly payments or shorten your loan term.

What is a Rate & Term Refinance?

A rate-and-term refinance is a popular mortgage option that allows you to change your interest rate, loan duration, or both—without borrowing additional funds from your home equity. It’s the go-to strategy for Rhode Island homeowners aiming to lower their monthly payments, secure a better rate, or pay off their home faster.

Lower Your Rate

If mortgage rates have dropped since you took out your current loan, refinancing can help you lock in a lower rate—reducing your monthly payment and saving thousands in interest over time.

Change Loan Term

Choose a shorter term (like 15 years) to pay off your mortgage faster and build equity more quickly—or extend your term to reduce monthly payments during tight financial periods.

Switch Loan Types

Refinancing is also a chance to convert from an adjustable-rate mortgage (ARM) to a fixed-rate loan for added stability—or switch between loan types (Conventional, FHA, VA, or USDA) depending on your current qualifications and goals.

Benefits of Rate & Term Refinance

A rate and term refinance offers homeowners a powerful way to improve financial flexibility, reduce interest costs, and align their mortgage with current goals.

Lower Monthly Payments

By securing a better interest rate or extending your loan term, you can significantly reduce your monthly mortgage payment—freeing up funds for savings, investments, or everyday expenses.

Save on Total Interest

Locking in a lower rate or shortening your term can help you save big over the life of your loan, potentially cutting tens of thousands of dollars in total interest.

Build Equity Faster

Choosing a shorter loan term allows you to pay off your home quicker and build equity more rapidly—even if your payment stays the same or slightly increases.

Stable Monthly Payments

Switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan for predictable payments that won’t rise, no matter how market rates change.

Eliminate PMI

If you've built at least 20% equity in your home, refinancing can help you remove private mortgage insurance (PMI)—lowering your monthly cost even more.

Consolidate Mortgages

Have a second mortgage or home equity loan? A rate and term refinance can consolidate your loans into a single, manageable monthly payment—often with a lower interest rate.

Rate & Term vs. Cash-Out Refinance

Understanding the key differences between the two main types of mortgage refinancing.

Feature	Rate & Term Refinance	Cash-Out Refi
Primary Purpose	Change interest rate and/or loan term	Access home equity for cash
Loan Amount	Generally limited to current mortgage balance plus closing costs	Can exceed current mortgage balance to provide cash to borrower
Interest Rates	Typically lower	Usually higher than rate & term refinance
Equity Requirements	Less stringent (can refinance with less equity)	More equity required (typically 20% remaining after cash-out)
Closing Costs	Generally lower	Often higher due to larger loan amount
Approval Process	Usually simpler	More stringent underwriting
Best For	Lowering monthly payments or paying off mortgage faster	Home improvements, debt consolidation, or major expenses

Not sure which refinance option is right for you? Our mortgage specialists can help you evaluate your specific situation and recommend the best solution for your financial goals.

When to Consider a Rate & Term Refinance

Not sure if a rate & term refinance is right for you? Here are the most common situations where this refinance option can make a big financial impact:

Interest Rates Have Dropped

If today's market rates are at least 0.5% to 1% lower than your current mortgage rate, refinancing could reduce your monthly payment and save you thousands in interest over time.

Your Credit Score Has Improved

Better credit = better rates. If your credit score has increased since you got your mortgage, you may now qualify for a lower rate—even if market rates haven’t changed much.

You Want to Remove PMI

If your home’s value has gone up and you’ve reached 20% equity, refinancing can eliminate costly private mortgage insurance (PMI), lowering your monthly mortgage payment.

You Have Multiple Mortgages

Combining a first mortgage and a second mortgage or home equity loan into one streamlined refinance can simplify payments and reduce your total interest.

Your ARM Is About to Adjust

If your adjustable-rate mortgage (ARM) is nearing its variable phase, refinancing into a fixed-rate loan can protect you from rising interest rates and lock in predictable monthly payments.

You Want to Change Your Loan Term

Want to pay off your mortgage faster or lower your monthly payments? Refinancing lets you switch from a 30-year to a 15-year loan—or vice versa—based on your goals.

Are You Eligible?

Before you can refinance your mortgage, you’ll need to meet a few key criteria. Here’s what most lenders in Rhode Island (and nationwide) typically look for:

Good Credit Score

A minimum credit score of 620 is usually required, but a score of 740 or higher can help you secure the most competitive interest rates.

Sufficient Home Equity

Most lenders prefer you have at least 20% equity in your home, though some conventional refinance programs may allow for less.

Stable Income

You’ll need to show proof of reliable income and a steady job history—usually at least two years in the same field.

Manageable Debt-to-Income Ratio

Your DTI (debt-to-income) ratio should generally be below 43%, including your new mortgage payment. Lower DTI = better refinance approval odds.

Payment History

Most lenders want to see on-time mortgage payments for the past 12 months, with no recent delinquencies.

Seasoning Period

You typically must have had your current loan for at least 6 to 12 months before refinancing.

Not sure if you meet the requirements?

Let our RI mortgage team evaluate your situation and guide you through your refinancing options. Reach out for a free eligibility review today.

The Refinance Process

Our streamlined process makes refinancing your mortgage simple and straightforward.

Initial Consultation

Speak with one of our refinance specialists to review your current mortgage and goals. We’ll compare rate and term options to help you lower your interest rate, shorten your loan term, or both — without taking cash out.

Application

Complete a quick application and provide key documents like income verification, mortgage statements, and insurance details. We’ll guide you through every step to keep it simple.

Processing & Underwriting

Our team reviews your credit, income, assets, and home value, then submits your file for underwriting. We work to secure your approval quickly so you can lock in your new rate with confidence.

Closing

Sign your final documents, finalize your new loan, and start saving right away. Your old mortgage is paid off automatically, and your new lower-rate or shorter-term loan takes effect immediately.

What to Expect

Timeline: Most rate and term refinances close within 30-45 days from application.
Documentation: You'll need to provide recent pay stubs, W-2s, tax returns, bank statements, and information about your assets and debts.
Costs: Closing costs typically range from 2% to 5% of the loan amount. You can often roll these costs into your new loan amount.

Why Choose Us?

Tired of painfully slow refinances? RI Mortgage Brokers cuts the BS. We tailor rate-and-term refinances to you—lock in lower payments, dump PMI, or shorten your mortgage term—all without draining equity. Licensed locally, dialed into RI lending quirks, we streamline the paperwork and shop multiple brokers so you get fast, fair results—no fluff, just smart savings.

License & Regulated

We’re a legit Rhode Island mortgage broker, fully licensed and regulated. That means clear pricing, legal safeguards, and a level of trust you don’t get with sketchy national players.

Consistently Competitive Rates

Why settle for one offer? We shop multiple brokers to find you a lower interest rate, better loan term, or PMI removal—whatever saves you money and fits your financial goals.

Local market Expertise

We live here. So we know local broker quirks, market shifts, and underwriting patterns. That insight cuts hiccups, speeds approvals, and tailors your refinance to what actually works in this state.

Personal Expert Support

You’re not just a file in the system. Our team explains options in plain English, walks you through trade-offs—fixed vs adjustable, term changes, PMI removal—and helps you choose with confidence.

Stronger Chances of Approval

We match your profile with brokers who want your business—giving you better approval chances on rate-and-term refinances. You avoid needless rejections that big banks often throw at borrowers with nonstandard scenarios.

Simplified & Speedy Closings

No drawn-out refinance process here. We trim the paperwork, coordinate with brokers, and keep things moving—most RI rate-and-term refis close within 30–45 ays, not months.

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What Our Clients Say

Real stories from homeowners who have used our rate and term refinance services.

Ready to Lower Your Rate?

Our mortgage specialists are ready to help you take advantage of today’s competitive interest rates and improve your financial situation.

We’re available Monday-Friday from 9AM-5PM and Saturdays by appointment. Evening appointments are also available upon request.

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FAQs

Get answers to common questions about rate and term refinancing.

How much does it cost to refinance?

Refinancing typically costs 2% to 5% of your loan amount. This can include lender fees, appraisal, title insurance, and other closing costs. Some lenders offer no-closing-cost refinance options by adjusting your rate slightly higher.

How much can I save by refinancing?

That depends on your current rate and loan term. Many homeowners save tens of thousands over the life of the loan by securing a lower interest rate or switching to a shorter term. A mortgage professional can run the numbers for a personalized savings breakdown.

Is there a waiting period before I can refinance?

Yes, for most loans:

FHA loans: 6 months after closing
VA loans: 210 days after the first payment
Conventional loans: No specific waiting period, but lenders may require a few months’ payment history

Will refinancing affect my credit score?

Yes, but only slightly and temporarily. A lender will perform a hard credit inquiry, which may drop your score by a few points. However, if refinancing improves your financial standing, your score can recover quickly.

Should I pay points to get a lower rate?

Paying points (called “discount points”) can lower your interest rate and save you money long-term—especially if you plan to stay in the home for many years. If you're refinancing for the short term, skipping points might be better.