---
title: What is a rate and term refinance?
description: A refinance by which a borrower obtains a lower interest rate or more beneficial terms on a mortgage. The new loan must provide a benefit to the borrower.
---

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# What is a rate and term refinance?

## A process by which a borrower can obtain a lower interest rate or more beneficial terms on a mortgage loan.

A rate and term refinance is a process by which a borrower can obtain **a lower interest rate or more beneficial terms on a mortgage**. With a rate and term refinance, the new loan must provide a benefit to the borrower and **typically matches the balance of their current loan.**

The benefit to the borrower may be in a lower monthly payment or better loan terms (such as the elimination of a balloon payment or adjustable rate feature). See [No-Cost Refinance](https://www.jvmlending.com/glossary/#no-costrefinance). 

**JVM monitors all our closed files and will reach out to previous borrowers with offers to refinance as applicable.** 

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