Same balance. Better terms.

Rate and Term Refinance, step by step.

1. Understand what separates it from cash-out. Rate and term means the new loan pays off the existing lien plus closing costs and, on most programs, a small amount of incidental cash. Cross that threshold and the loan reprices as a cash-out.
2. Expect better pricing and higher leverage. Because the lender is not handing you money, rate and term typically allows more leverage at a lower rate than a cash-out on the same property.
3. Know the seasoning rules. Some programs require you to have owned the property for a set period before they will lend on current appraised value rather than what you paid.
4. Time it against your maturity. If you are exiting bridge debt, start sixty days out. Lenders do not move faster because your balloon is next week.

If you want money out, look at cash-out refinance instead. If you only want to fix the terms, this is the cheaper door.

Built for these borrowers.

• Investors exiting hard money or bridge financing into permanent debt
• BRRRR operators refinancing a stabilized property after renovation
• Borrowers with a balloon or maturity date approaching
• Anyone who financed at a higher rate and now qualifies for better

Documents to gather.

• Current mortgage statement and payoff
• Lease agreement or market rent analysis
• Entity documents and EIN letter
• Insurance declaration page
• Property tax bill
• Renovation receipts, if refinancing after rehab