Rate / Term refinances are refinances where a Consumer obtains a new loan that pays off their existing loan without receiving any cash back from the equity in their home. Consumers apply for Rate / Term refinances to:
Obtain a lower interest rate / payment
Reduce or eliminate mortgage insurance
Remove Borrower's from title
Rate / Term refinances come in two forms:
Standard Refinances which require a Consumer to requalify for the new loan
Streamline Refinances which do not require a Consumer to requalify for the new loan.