Rate And Term Refinance

The refinancing of an existing mortgage for the purpose of changing the interest and/or term of a mortgage without advancing new money on the loan. This differs from a cash-out refinance, in which new money is advanced on the loan. Rate and term refinances can carry lower interest rates than cash-out refinances.

Investopedia Says:
Rate and term refinancing activity is driven primarily by a drop in interest rates, while cash-out refinance activity is driven by increasing home values. Because there are pros and cons associated with a rate and term and cash-out refinancing, the borrower must weigh the pros and cons of each before making any final decisions.

Related Links:
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Learn how interest rates affect the housing market and how you can keep up with changes. How Will Your Mortgage Rate?
Find out how to choose which mortgage style is right for you. Make A Risk-Based Mortgage Decision