Lower Your RateNot Your Standards
A rate and term refinance swaps your current mortgage for one with better terms—without touching your equity.
What Is a Rate and Term Refinance?
A rate and term refinance means getting a new mortgage to replace your existing one. The goal is to secure a better interest rate, a different loan term, or both. Think of it as trading in your old mortgage for one that fits your budget better.
Rate & Term Refinance
What this page is about
- Lower your interest rate
- Change your loan term (30 → 15 years)
- Switch loan type (ARM → fixed)
- No cash back at closing
- Preserves your home equity
- More flexible eligibility
- Full rate-and-term refinance guide →
Cash-Out Refinance
Different option
- Tap into your home equity for cash
- Receive lump sum at closing
- Reduces available home equity
- Slightly higher interest rates
- Stricter eligibility requirements
- Learn about cash-out refinance →
When Is Rate & Term Refinance Right for You?
Consider it if you want to:
- Lower your monthly mortgage payment
- Pay off your home faster with a shorter term
- Lock in a fixed rate before ARM adjusts
- Remove PMI once you have 20% equity
It may NOT be right if:
- You need cash for home improvements
- You want to consolidate high-interest debt
- You're moving within 2-3 years
- Your break-even point exceeds your stay
Learn BeforeYou Refinance
Watch expert explanations of the refinance process from trusted educational sources.
Refinancing Your Mortgage: When Does It Make Sense?
Sal Khan explains the math behind refinancing decisions—when it saves money and when it doesn't.
Video Playlist
6 educational videos
Educational content from trusted professionals
What You Need to Refinance
Requirements vary by lender, but here are the general guidelines for rate and term refinancing in Arizona.
| Requirement | Details |
|---|---|
Credit Score | 620 minimum for most conventional loans. Higher scores (740+) get the best rates. FHA streamline may allow lower. |
Home Equity | 20% equity to avoid PMI. Some programs allow 10-15% with mortgage insurance. |
Debt-to-Income (DTI) | Generally 43% or less. Some programs allow up to 50% with compensating factors. |
Payment History | 12 consecutive months of on-time mortgage payments required. |
Employment/Income | Stable job or income source. W-2s, pay stubs, and tax returns typically required. |
2026 Arizona Conforming Loan Limits
Loans above these limits are considered jumbo loans with different requirements.
Typical Closing Costs
Includes: loan origination fees, appraisal, title search, credit report, and recording fees.
Many closing costs can be rolled into your new loan balance.
The Arizona Refinance Process
From application to closing, here's what to expect when refinancing your Arizona home.
Check Your Finances
Review your credit score, current equity, and debt-to-income ratio. Gather recent pay stubs and tax returns.
Shop for Rates
Compare offers from multiple lenders. Look at both interest rates and closing costs to find the best deal.
Apply & Process
Submit your application with documentation. The lender orders an appraisal and verifies your information.
Close & Save
Sign the final documents, pay any closing costs, and start enjoying your new lower rate or term!
Important Details & Protections
Arizona-specific information you should know
Frequently Asked Questions
Authority Links & References
We've gathered official resources from government agencies and trusted financial institutions to help you make informed refinancing decisions.
Consumer's Guide to Mortgage Refinancing
Official guide covering refinancing basics, costs, and consumer rights.
Refinancing Your Mortgage
Consumer Financial Protection Bureau's comprehensive refinance resource.
Arizona Mortgage Rates
Current Arizona mortgage and refinance rate data.
Right of Rescission FAQ
Arizona's official guidance on your 3-day cancellation rights.
Refinance Calculator
Interactive tool to estimate refinance closing costs.
How Often Can You Refinance in Arizona?
Arizona-specific guidance on refinance timing and seasoning periods.
These links lead to external websites. Mortgage Genius is not responsible for their content.
Ready to Lower Your Rate?
Let's see how much you could save with a rate and term refinance. Get a personalized quote in minutes.
Explore More Arizona Mortgage Options
Cash-Out Refinance
Tap into your equity
Access cash from your home equity for renovations, debt consolidation, or other needs.
Refinance Overview
All refinance options
Compare all refinance options to find the best fit for your financial goals.
Break-Even Point
Calculate your savings
Learn how to calculate when your refinance savings exceed the closing costs.