Definition of 'Rate-and-Term Refinance'
There are a few things to keep in mind before you decide to do a rate-and-term refinance. First, you need to make sure that you qualify for a new mortgage. This means that you need to have good credit and a steady income. Second, you need to compare the costs of refinancing with the potential savings. You can do this by using a mortgage calculator to estimate your new monthly payments and the total amount of interest you will pay over the life of the loan.
If you decide to go ahead with a rate-and-term refinance, there are a few things you need to do. First, you need to find a lender who is willing to offer you a good interest rate. You can do this by shopping around and comparing rates from different lenders. Second, you need to get pre-approved for a new mortgage. This will give you an idea of how much you can borrow and what your interest rate will be. Finally, you need to close on the new loan. This is the process of signing all of the paperwork and transferring the title to your new lender.
A rate-and-term refinance can be a good way to save money on your monthly mortgage payments. However, it is important to weigh the costs and benefits before you decide to move forward.
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