Learn About Rate and Term Refinancing.

A Refinance Loan replaces your current mortgage with a new one.
It may be a good option for you if:

  • You want a lower interest rate
  • You want a different loan term (number of years)
  • You want a lower monthly payment
  • You want cash from the equity in your home

Refinance Loan benefits and features:

Note: Benefits and features vary depending on your circumstances and the terms of your Refinance.

  • Interest rate and monthly payment. You may be able to get a lower rate.
    Depending on the length of your loan term, a lower rate may decrease or
    increase your monthly payment.
  • Loan term and monthly payment.
    • Decreasing the length of the loan term usually results in a lower interest rate but a higher monthly payment. You’ll likely pay off your mortgage sooner because you’re paying more principal each month. The total interest you pay throughout the shorter mortgage term will typically be less.
    • Increasing the loan term usually results in a lower monthly payment, but the total amount of interest you pay throughout the longer term will typically be more.
  • Cash from the equity in your home. If you refinance for an amount greater
    than what you owe on your home, you can receive the difference in a cash
    payment, which you may use for home improvements to increase the value of
    your home or in any way you choose.
  • Convert from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate
    Mortgage, or get an ARM with better terms.
  • Other requirements and conditions apply.

Rate & Term Refinance

In simple terms, a “Rate and Term Refinance” refers to the replacement of an
existing Mortgage(s) with a branch new home loan. The refinance loan comes with a new interest rate (ideally a lower one than your current one) and a fresh mortgage term.

The existing mortgage is effectively paid off by opening the new loan, which pays
the old loan balance.

Guild Mortgage Yuma - Rate and Term Refinance

Why Do a Rate and Term Refinance?

  • Obtain a lower mortgage rate (save on interest)
  • To swap an ARM (hover over for definition: Adjustable Rate Mortgage: home
    loan with a variable interest rate. Rate is fixed for a period of time. After that, the rate is applied on the outstanding balance and resets periodically, yearly, or even monthly intervals.)
  • To reduce monthly mortgage payments (and ease payment burden)
  • To consolidate two combo mortgage
  • To add or remove someone from a loan
  • To remove costly mortgage insurance
  • To switch loan programs
  • To shorten loan term and pay off loan faster

Contact a loan officer today, and we can help you break it down to see if this is a good option for you!

Rosa Castillo

Senior Loan Officer

NMLS 799138

State Lic: LO-0944489

PHONE: (928) 920-2831

PHONE: (928) 247-9089

Apply Now

Derek Egeberg

Branch Manager

NMLS 180899

State Lic: AZ LO-0915245, TN 236104

PHONE: (928) 246-0422

PHONE: (928) 247-9089

Apply Now

Bill Craft

Sales Manager

NMLS 1621885

State Lic: AZ LO-0942496, CA-DBO01621885, MLO-54015VA

PHONE: (928) 366-1639

PHONE: (928) 247-9089

Apply Now

Ray Ochoa

Senior Loan Officer

NMLS 214114

State Lic: AZ LO-0915882, TN 238287

PHONE: (928) 246-5937

PHONE: (928) 247-9089

Apply Now

I Want to Refinance!

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Common Refinance Questions:

What happens when I Refinance a mortgage?

You are taking out a new loan on your home. The old mortgage is then paid off and you will owe payments on the new mortgage.

Do I get to skip a payment, like when I bought my house?

Yes! Please, verify with your lender which month you will be able to skip, as the closing date can change that.

What kind of loan should I get?

There are two basic kinds of mortgage loans we recommend. Though, it truly depends on your circumstance! Ask your loan officer which is best for you.

What do I need to apply for a Refinance?

Just like buying a home, you will need the following common documents: W-2s from the last two years, Tax Returns from the last two years, Bank statements from the last 2 months, Paystubs from the last month, and ID(s). Your lender may ask for more documents depending on the circumstance.

What fees are associate with a Rate and Term Refinance?

Just as with purchasing a new home, there are closing costs associated with refinancing a loan. The most common types are application, appraisal, title, attorney, loan origination, document preparation, flood certification, title search, title insurance, and recording fees.