Today’s homeowners have access to several mortgage refinancing options to relieve their financial burdens. Among these options is what is known as a rate and term refinance at CNMR Group. As the name suggests, this refinancing method involves altering the interest rate as well as the term in which the mortgage must be paid off. A rate and term refinance essentially pays off the original mortgage and its terms, ideally replacing it with a lower mortgage interest rate thus changing the rate and term period. Although the mortgage rate and term change, the loan amount does not—this is one of the features that distinguishes it from a cash out refinance.

Benefits of a Rate and Term Refinance

A rate and term refinance can enable a homeowner to nail down a lower rate on their mortgage, or reduce their monthly payment. This refinance option is frequently chosen when homeowners wish to replace an adjustable rate mortgage (ARM) with a fixed rate mortgage. A rate and term refinance with CNMR Group can also be used to remove the name of a party on the loan, such as a former spouse. If you’re uncertain whether this kind of refinancing is right for you, or what you should do in order to obtain the best one available, you can rely on CNMR Group to give you the guidance you need. Since 2003, we have helped California homeowners find the best mortgage solution to meet their individual needs.