BROWSE

Rate And Term Refinance

What is 'Rate And Term Refinance'

The refinancing of an existing mortgage for the purpose of changing the interest and/or term of a mortgage without advancing new money on the loan. This differs from a cash-out refinance, in which new money is advanced on the loan. Rate and term refinances can carry lower interest rates than cash-out refinances.

Explaining 'Rate And Term Refinance'

Rate and term refinancing activity is driven primarily by a drop in interest rates, while cash-out refinance activity is driven by increasing home values. Because there are pros and cons associated with a rate and term and cash-out refinancing, the borrower must weigh the pros and cons of each before making any final decisions.


Further Reading


State of the Union: The Financial Crisis and the ECB's Response between 2007 and 2009
heinonline.org [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

Lessons from the European economic and financial great crisis: A surveyLessons from the European economic and financial great crisis: A survey
www.sciencedirect.com [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

Systematic mistakes in the mortgage market and lack of financial sophisticationSystematic mistakes in the mortgage market and lack of financial sophistication
www.sciencedirect.com [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

The refinancing threshold pricing model: An economic approach to valuing MBSThe refinancing threshold pricing model: An economic approach to valuing MBS
link.springer.com [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

Systemic risk and the refinancing ratchet effectSystemic risk and the refinancing ratchet effect
www.sciencedirect.com [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

Optimal mortgage refinancing with stochastic interest ratesOptimal mortgage refinancing with stochastic interest rates
onlinelibrary.wiley.com [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

The mortgage refinancing decisionThe mortgage refinancing decision
heinonline.org [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …

The interplay of economic reforms and monetary policy: The case of the eurozoneThe interplay of economic reforms and monetary policy: The case of the eurozone
onlinelibrary.wiley.com [PDF]
… In particular, the framework permits short-term interest rates to be changed, while keeping some … ECB Working Paper No. 926. ECB (2009) 'Recent Developments in the Retail Bank Interest Rate Pass-Through in the Euro Area'. Monthly Bulletin, August 2009, pp. 93-105 …


Leave a Reply

Your email address will not be published. Required fields are marked *