You’re a strong candidate if your rate is above market, you want a shorter term, you can now drop mortgage insurance, or you hold an ARM you’d like fixed. Standard credit, income, and equity apply.
Ideal candidates
Rate-and-term shines for four goals: lowering your rate, shortening your term (e.g., 30 to 15 years), removing PMI once you have 20% equity, and converting an adjustable-rate loan to a fixed one for stability.
Confirming it pays
As with any refinance, eligibility isn’t the whole story — the break-even decides whether it’s worth it. We calculate it before you proceed.
Frequently asked questions
Can I drop PMI with a rate-and-term refinance?
Yes — if you now have ~20% equity, refinancing into a conventional loan can eliminate mortgage insurance, sometimes saving more than the rate itself.
Should I switch my ARM to a fixed rate?
If you’ll keep the home past the ARM’s fixed period or expect rates to rise, locking a fixed rate adds valuable certainty.
Is it worth shortening my term?
Often yes for long-term savings — the payment rises but total interest drops sharply. We’ll compare 30 vs 15 years.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.