Loan Programs

Rate Term Refinance

The process of paying off one loan with the proceeds from a new loan,
using the same property as security.

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Rate Term Refinance

The process of paying off one loan with the proceeds from a new loan, using the same property as security. Cash received by the borrower at closing may not exceed $2,000. In Texas you are never allowed to receive cash at closing on a rate term refinance of your primary home.

In other states they do have a limited cash out up to $2K on a rate term but not in Texas.

Advantages:

✔  Shorten Term of Mortgage: Refinancing an existing loan for another to a 10, 15 or 20 Year Fixed.

  Lower Interest Rate: Refinancing is a good idea if you can reduce your interest rate to save interest payments over the life of the loan.

✔  Fixed Interest Rate: Converting an adjustable-rate mortgage to a fixed rate can eliminate future interest rate jumps.

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NOT A GUARANTEE, OFFER OR AGREEMENT. EVERETT FINANCIAL, INC. D/B/A SUPREME LENDING NMLS ID #2129 (www.nmlsconsumeraccess.org) 14801 Quorum Dr., #300, Dallas, TX 75254. 877-350-5225. © 2024. Information, rates, & programs are subject to change without prior notice. Subject to credit & property approval. Not affiliated with any government agency. Intended for Texas Consumers Only. Texas- SML Mortgage Banker Registration Residential Mortgage Loan Originator.

Rate & Term Refinance: Get a New & Improved Mortgage

With a rate and term refinance, you can pay off your old mortgage with a new one that has more favorable terms.

If you qualify for a rate and term refinance, you may be able to lower your monthly payment, reduce interest paid, pay your mortgage off faster, change your loan type or eliminate the private mortgage insurance (PMI) required by some loan types.

Reasons to Opt for a Rate & Term Refinance

Has your financial situation improved since you purchased your home? Maybe you’ve improved your credit score or make more money since qualifying for your first loan. Or perhaps you want to consolidate debt, spend the money saved on home repairs or get a lower interest rate.

Whatever the reason you’re looking into a rate and term refinance, Supreme Lending Dallas can help.

Rate & Term Refinance: FAQs

We’ve gathered some frequently asked questions and answers to help you decide if a rate and term refinance could benefit you.

When Should I Consider a Rate & Term Refinance?
A good time for a rate and term refinance is when interest rates are significantly lowered.

A rate and term refinance can also be beneficial when nearing the end of the fixed-rate guarantee of an adjustable-rate mortgage.

Do you have 20% equity in your home when you didn’t before? If so, you can probably eliminate private mortgage insurance (PMI). Plus, although a rate and term refinance doesn’t have home equity requirements, 20% equity qualifies you for the most favorable rates.

What's the Difference Between a Rate & Term Refinance and a Cash-Out Refinance?
With a cash-out refinance, you take equity out of your home, which increases your debt, while a rate and term refinance does not.

Although it’s allowed elsewhere, Texas is not a state where you can get some cash out of a rate and term refinance. Here, if you need cash, you need a cash-out refinance.

How Can a Rate & Term Refinance Benefit Me?
In addition to securing a lower interest rate, rate and term refinance benefits could include lower monthly payments, changing term lengths for a quicker mortgage pay-off or changing your loan type.

Feel free to contact us with other questions at any time.

Choose Supreme Lending With Peace of Mind

At Supreme Lending, we’ve built a level of trust with investors. This translates to lower interest rates and closing costs, as well as fast turnaround times for our customers. 

Contact us and get pre-qualified for your home loan today!