Lower your rate, shorten your term, or simplify your mortgage — without tapping equity.

Not all refinances are about cashing out.

In fact, one of the most powerful ways to save money — or pay off your home faster — is through a rate-and-term refinance.

👉 This type of refi lets you replace your current mortgage with a new one that has a better interest rate, a shorter or longer term, or both — without accessing home equity.

Here’s what a rate-and-term refinance is, when it makes sense, and how to know if it’s worth doing in today’s market.

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✅ What Is a Rate-and-Term Refinance?

A rate-and-term refinance changes the structure of your existing loan — but doesn’t provide you with a lump sum of cash.

You can use it to:

• Lower your interest rate
• Shorten or extend your loan term
• Switch from an ARM to a fixed-rate loan
• Remove or update mortgage insurance (PMI/MIP)

📘 Because you’re not pulling cash out, this type of refi often comes with lower rates and fewer documentation requirements than cash-out loans.

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🧠 When Does It Make Sense to Refinance?

🔻 1. Lower Your Monthly Payment

If market rates are lower than what you currently have, refinancing can save you hundreds each month — or tens of thousands over time.

⏳ 2. Shorten Your Loan Term

Go from a 30-year to a 15- or 20-year loan to build equity faster and pay less interest overall.

🔒 3. Lock In a Fixed Rate

Switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan for long-term stability.

🚫 4. Remove Mortgage Insurance

If you have 20%+ equity, you may be able to refinance out of:

• FHA MIP by switching to a conventional loan
• PMI on a conventional loan with a new appraisal

💬 We’ll help you determine if your current equity and market conditions make this worthwhile.

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📊 Example: How a Rate-and-Term Refi Saves Money

Scenario	Before	After
Interest Rate	6.75%	5.50%
Loan Term	30 years (28 remaining)	30 years (reset)
Monthly Payment	$2,250	$1,950
Monthly Savings	—	$300
Total Interest Saved Over Time	—	$70,000+

Note: Even with closing costs, break-even points can be reached within 1–2 years depending on your savings.

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🔍 Is a Rate-and-Term Refi Right for You?

You might benefit if:

• You got your current mortgage when rates were higher
• You have strong credit and income
• You want payment relief without taking cash out
• You’ve gained equity or improved your credit since you last financed
• You want to move from FHA to Conventional (and remove MIP)

Even if rates are slightly higher than your current one, you may still save by removing PMI or restructuring your term.

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🧾 What Do You Need to Qualify?

✅ Stable income and employment
✅ Credit score (usually 620+ for conventional)
✅ At least 3%–5% equity (more if removing mortgage insurance)
✅ Acceptable debt-to-income (DTI) ratio

We’ll run a full analysis — no pressure, just real numbers — to show you whether it’s worth it.

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🏢 Why PRMI?

At PRMI, we help homeowners:

• Compare refinance options side-by-side
• Lower monthly payments or accelerate payoff
• Remove mortgage insurance when eligible
• Refi from FHA to Conventional, or ARM to Fixed
• Close quickly with in-house processing and support

You deserve a mortgage that matches where you are now — not where you were when you bought your home.

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👇 Wondering If a Rate-and-Term Refi Makes Sense for You?

Let’s break down your current loan, market conditions, and payoff goals — and help you see the smart path forward.