If you want to make your mortgage payments more comfortable and your home value is steady or has increased, you may be able to refinance your mortgage with a rate and term refinance loan. A rate and term only refinance can be either:
Refinancing into a lower interest rate could reduce your payment, leaving more money in your monthly budget. And depending on the term of the loan, you could also save on the total amount of interest paid over the life of the loan.
Depending on the remaining term of your current loan, you could shorten your loan term with the goal of building equity faster or paying off your home more quickly. If you choose to extend your loan term, you may be able to take advantage of a lower monthly payment. U.S. Bank offers a range of loan terms for rate and term only refinancing.
With a rate and term refinance, the principal remaining from your previous mortgage stays the same as long as you pay your closing costs upfront. This is good news for you, because it means you can continue to build the equity in your home. It differs from a cash out refinance in that it doesn’t pull funds from the equity in your home.
If you’re an existing customer with a U.S. Bank first mortgage or U.S. Bank Personal Checking Package, you may be eligible for a customer credit on the closing costs of your next mortgage.1 Take 0.25% of your new first mortgage loan amount and deduct it from the closing costs, up to a maximum of $1,000.2
If your mortgage is with another lender, U.S. Bank offers other refinancing options to lower your interest rate and change the term of your loan.
Ready to get started? Our mortgage loan officers can answer all of your home refinance questions and help you find the mortgage that's right for you.