Rate and Term Refinance: Improve Your Mortgage Rate
A rate and term refinance replaces your current mortgage with a new home loan designed to improve your interest rate, loan term, monthly payment, or a combination of the three. LendFriend helps homeowners evaluate refinance options and find competitive financing based on their goals, equity, credit, and current mortgage.
What Is a Rate and Term Refinance?
A rate and term refinance replaces your current mortgage without taking significant cash out of your home. Homeowners commonly refinance to lower their interest rate, reduce their monthly payment, shorten their loan term, or switch from an adjustable-rate mortgage to a fixed-rate loan.
Unlike a cash-out refinance, a rate and term refinance is primarily focused on improving the terms of your existing mortgage. Whether refinancing makes sense depends on your current interest rate, closing costs, remaining loan balance, and how long you plan to keep the home.
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Why Homeowners Trust LendFriend With Their Rate and Term Refinance
At LendFriend Mortgage, we help homeowners refinance when better loan terms can improve their monthly payment, interest costs, or long-term mortgage plan.
Here’s why rate and term refinance borrowers choose us:
We know rate and term refinancing. Whether you want to lower your mortgage rate, reduce your monthly payment, shorten your loan term, or move from an adjustable-rate mortgage to a fixed-rate loan, we help you evaluate the numbers clearly.
More than one refinance option. We offer conventional, jumbo loans, FHA, and VA IRRRLs, along with Non-QM options such as bank statement loans, asset depletion mortgages, and no-ratio loans for borrowers with complex income or assets.
Competitive refinance rates. We help identify strong pricing while keeping points, lender fees, and total closing costs in view so you can evaluate the real value of the refinance.
Clear break-even analysis. We show how your new payment, closing costs, loan term, and potential monthly savings affect how long it takes for the refinance to pay for itself.
Fast, dependable closings. Our refinance process is built for speed and clarity, with qualifying loans able to close in as little as 14 days.
Refinance Break-Even Analysis
A rate and term refinance should save you enough money to justify the cost of closing. Your break-even point is the number of months it takes for your monthly mortgage savings to recover your refinance closing costs.
For example, if refinancing costs $6,000 and lowers your monthly payment by $300, your break-even point is approximately 20 months. If you expect to keep the mortgage beyond that point, the refinance may provide meaningful long-term savings.
Interest rate, loan balance, points, closing costs, and the new loan term can all affect the calculation. Use our refinance calculator to compare your current mortgage with a new loan and estimate your potential savings.
See If Refinancing Makes Financial Sense
Compare your current mortgage, new payment, closing costs, and estimated break-even point before you commit.
Rate and Term Refinance Options Across Key States
LendFriend helps homeowners nationwide use rate and term refinancing to lower their mortgage rate, reduce monthly payments, shorten their loan term, or move into a loan that better fits their financial goals. We have particularly strong experience in markets such as Texas, Colorado, Michigan, and Connecticut, with access to conventional, VA, jumbo, and Non-QM refinance programs.
- In Texas, we help homeowners refinance conventional and jumbo mortgages across Austin, Dallas, Houston, and San Antonio, including larger loan amounts in higher-priced markets.
- Across North Carolina and Georgia, homeowners use rate and term refinances to lower monthly payments, shorten loan terms, or refinance existing VA loans through programs such as the VA IRRRL.
- In higher-cost markets throughout Illinois and New Jersey, jumbo and Non-QM refinance options can help homeowners improve their mortgage terms even when traditional income documentation does not tell the full financial story.
Whether the goal is a lower interest rate, a shorter mortgage term, a lower monthly payment, or moving from an adjustable-rate loan to a fixed-rate mortgage, LendFriend helps homeowners find competitive rate and term refinance options nationwide.
When a Rate and Term Refinance Makes Sense
A rate and term refinance can make sense when changing your mortgage terms creates a clear financial benefit. Homeowners often refinance to lower their interest rate, reduce their monthly payment, shorten their loan term, or move from an adjustable-rate mortgage to a fixed-rate loan.
The strongest opportunities typically come when current mortgage rates are meaningfully lower than your existing rate, your credit profile has improved, or your home has gained enough value to qualify for better loan terms. Closing costs also matter, which is why the break-even point should be considered before moving forward.
Ideal Conditions for Rate and Term Refinancing:
- Current mortgage rates are lower than your existing rate
- Monthly savings justify the closing costs
- You plan to keep the home beyond the break-even point
- Your credit or equity position has improved
- You want to shorten your loan term or switch to a fixed rate
LendFriend helps evaluate the full refinance scenario, including rate, payment, closing costs, loan term, and long-term savings.
Rate and Term Refinance Qualification Requirements
Qualification depends on the loan program, property, credit, income, assets, and available home equity. Conventional, jumbo, VA, FHA, and Non-QM refinance programs can each have different guidelines.
For many borrowers, the process is similar to qualifying for the original mortgage, although certain refinance programs may offer streamlined documentation or appraisal requirements.
Key Qualification Factors:
- Credit score and payment history
- Debt-to-income ratio
- Home equity and loan-to-value
- Stable income or eligible qualifying assets
- Sufficient funds for closing costs when applicable
Strong borrowers may qualify for more competitive refinance rates and terms, while alternative programs can help homeowners whose income or assets do not fit traditional guidelines.
See Why Homeowners Love Refinancing With LendFriend
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I can’t thank Eric and LendFriend enough for their help. They really took the time to guide us through the complexities of our mortgage and insurance, which took a lot of the stress out of the experience. We felt like we were in great hands from start to finish. We are very happy with the service and highly recommend them to anyone looking for a supportive lending team!
Jason Cifune
Closed April 2025 -
Eric and his team were incredibly helpful and communicative throughout the lending and refinancing process, and made me feel very supported. Will definitely go back to them in the future.
James Zhu
Closed March 2026 -
Michael, Morgan, and Crystal were absolutely fantastic. Their communication was clear, their response time was incredibly fast, and they handled every step of the process with professionalism and care. Michael was outstanding, and the entire team made the experience smooth and stress-free from start to finish. I truly appreciate the level of service they provided and highly recommend them.
D Day
Closed February 2026 -
I recently completed a refinance with Lendfriend, and the experience was outstanding from start to finish. My Mortgage Broker, Michael, was incredibly professional and extremely responsive. He provided a level of customer service that is practically non-existent in the world today, making sure I felt supported every step of the way.
V Lemoine
Closed December 2025 -
Working with the LendFriend team was an excellent experience. They are all very responsive and on top of things and have very competitive rates. They can stand to communicate a little bit more actively once the rate is locked and goes into underwriting. Overall, I would work with LendFriend again and would highly recommended others work with the team.
Judah Kishk
Closed November 2025 -
Eric and his team was so amazing! They were so responsive and helped us come up with great strategies along the way! Eric would respond literally at any time of the day and they were able to help us manage a really quick close! We are so grateful for their support!!
Jo Reyes
Closed November 2025
WHY CHOOSE LENDFRIEND?
At LendFriend Mortgage, we help homeowners refinance with a clear view of the rate, payment, closing costs, and long-term savings. From conventional rate and term refinances to jumbo and Non-QM loans, our goal is to find the refinance option that delivers the strongest financial outcome.
Around the Clock
Refinancing can move quickly when rates change. We stay available throughout the process so you can review options, answer underwriting requests, and keep your closing on schedule.
Loan Options
Our broader refinance options include conventional, jumbo, VA, FHA, and Non-QM loans, along with cash-out refinance and jumbo cash-out refinance options when accessing equity is part of the goal.
100% Customer Satisfaction
More than 1,000 five-star reviews across Google, Zillow, and Yelp reflect the communication, guidance, and execution our clients expect throughout the mortgage process.
Competitive Cash-Out Refinance Rates with No Points
We focus on competitive refinance pricing without automatically using points to make an advertised rate look lower. That helps you evaluate the true cost and potential savings of your new mortgage.
Personalized Mortgage Guidance
We evaluate your current rate, remaining loan term, monthly payment, equity, and financial goals to help determine whether refinancing makes sense and which option fits best.
Close in as little as 14 days
Our streamlined refinance process can allow qualifying borrowers to close in as little as 14 days, helping you lock in favorable terms and start realizing the benefits sooner.
Rate and Term Refinance FAQs
How much lower does my mortgage rate need to be to refinance?
A mortgage rate that is 0.5% lower can be enough to make refinancing worthwhile, particularly on a larger loan balance. A reduction of 1% or more can create substantial monthly and long-term savings. Your break-even point ultimately depends on your loan balance, closing costs, and how long you plan to keep the mortgage. Our mortgage calculator can help you compare payments at different rates.
Can I refinance a jumbo mortgage?
Yes. Homeowners with larger mortgage balances can use jumbo loans for rate and term refinancing. Even a relatively small rate reduction can create meaningful savings on a seven-figure mortgage.
Can I refinance if most of my wealth is in investments?
Yes. High-net-worth homeowners may be able to qualify based on eligible investments and retirement assets instead of relying entirely on employment income. Jumbo asset depletion loans can be particularly useful for borrowers with substantial assets but limited W-2 income.
Is a rate and term refinance different from a cash-out refinance?
Yes. A rate and term refinance is primarily used to lower your interest rate, change your monthly payment, or adjust your loan term. A cash-out refinance increases the mortgage balance so you can access a portion of your home equity in cash. Our guide to how mortgage refinancing works explains the different refinance options in more detail.
Should I refinance into a fixed-rate mortgage or an ARM?
A fixed-rate mortgage is usually the better choice if you expect to keep the loan for many years and want a predictable payment. An adjustable-rate mortgage can make more sense if the initial rate is meaningfully lower and you expect to sell or refinance before the fixed period ends, typically within 5, 7, or 10 years. Our guide to fixed-rate vs. adjustable-rate mortgages breaks down the tradeoffs in more detail.
Can I get a rate and term refinance in Austin?
Should I refinance into a fixed-rate mortgage or an ARM?
Can I refinance a fix-and-flip loan into a DSCR loan?
Yes. Once the renovation is complete and the property is ready to operate as a rental, you can often refinance a short-term fix-and-flip or hard money loan into a long-term DSCR loan. Qualification is based primarily on the property’s rental income and value rather than your personal income. Our guide to refinancing a finished flip into a 30-year DSCR loan explains the process, seasoning rules, and cash-out considerations in more detail.
Contact us today to start your rate and term refinance.
Stronger Negotiating Position when Buying a Home
The equity in your current home is unlocked and used as a downpayment on your new home; meaning no sales contingency required! Sellers HATE sales contingencies. Without a sales contingency, your offer is stronger, increasing your chances of buying your next home with ease.
Get the Highest and Best Sale Price
Without feeling pressured to sell quickly, you can wait for the best offer on your current home. List your home at the best time, market it effectively, and attract more competitive offers. With no rush, you can negotiate better terms and get the highest selling price.
Reduced Stress
Don't worry about finding temporary housing or organizing multiple moves. Avoid the chaos of having to coordinate the sale of your current home and the purchase of a new one. Transition seamlessly from one home to another and reduce stress or anxiety, making the moving process more manageable and organized.
Time for Improvements
Make necessary renovations or updates to your new property before you move in. Painting, remodeling, or other improvements would be more challenging if you were already living there. Moving into a freshly updated home (instead of living in it during renovations) is just so much nicer!