# Rate and Term Refinance

Canonical URL: https://valor.mortgage/rate-term/
Page title: Rate and Term Refinance in Tennessee | Valor Mortgage

Refinance — No Cash Out

## Change Your Rate, Your Term, or Both — Without Taking Cash Out

Lower rate · Shorter term · Adjustable to fixed · Drop FHA mortgage insurance · VA IRRRL · FHA Streamline

By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)
Last updated October 16, 2026
Checked against Fannie Mae, Freddie Mac, HUD, VA and USDA rules · October 2026

A **rate and term refinance** replaces the mortgage you have with a new one on better terms. The new loan pays off your current balance — plus the costs of the refinance, if you choose to include them — and nothing more. You are not pulling equity out of the house. You are changing the **interest rate**, the **length of the loan**, or both.

Lenders call it a *no cash-out* or *limited cash-out* refinance. Because no new money is leaving the loan, it is the lowest-risk kind of refinance for a lender, and it is usually priced and qualified more favourably than a [cash-out refinance](https://valor.mortgage/cash-out/).

Valor Mortgage is an independent broker based in Springfield, Tennessee. As a broker we compare wholesale lenders on your specific file, so the question is not just *whether* to refinance but *which lender* prices your rate and term refinance best. Christopher Armantrout (NMLS #1210804) has financed Tennessee homes since 2015.

**Christopher Armantrout — Valor Mortgage**

[615.671.9178](tel:+16156719178) | [christopher@valor.mortgage](mailto:christopher@valor.mortgage)

724 S Main St, Springfield, TN 37172 | Sun–Thu 8am–5pm | Fri 8am–3pm

[Schedule a Free Refinance Review →](https://valor.mortgage/book-your-appointment/)

## What a Rate and Term Refinance Can Change

| Goal | What changes | Watch for |
|---|---|---|
| **Lower your rate** | Same or similar term, lower interest rate, lower monthly principal and interest. | The savings have to repay the closing costs before you sell or refinance again — see the break-even section below. |
| **Shorten the term** | For example 30 years to 20 or 15. The house is paid off sooner and total interest drops sharply. | The monthly payment usually goes *up*, even at a lower rate. It has to fit your budget comfortably. |
| **Lower the payment** | Resetting to a new 30-year term spreads the balance over more months. | Restarting the clock can increase the total interest you pay over the life of the loan, even if the rate is lower. |
| **Adjustable to fixed** | Replace an ARM before it adjusts with a rate that never changes. | Compare the fixed rate against the adjustment caps in your current note, not just today’s ARM rate. |
| **Drop FHA mortgage insurance** | Refinance an FHA loan into a [conventional loan](https://valor.mortgage/conventional-loans/) once you have enough equity, ending the monthly MIP. | With less than 20% equity the conventional loan has its own mortgage insurance — we price both. |
| **Remove a borrower** | Refinance into the name of the person keeping the house, for example [after a divorce](https://valor.mortgage/refinancing-after-divorce/). | Paying a former spouse or co-owner their share of equity can count as a limited cash-out refinance when program rules are met; otherwise it is a cash-out refinance. We check the program rules before quoting. |

## Rate and Term vs. Cash-Out Refinance

|  | Rate and term (no cash-out) | Cash-out |
|---|---|---|
| **What the new loan pays** | Your existing mortgage, closing costs and prepaids. On a conventional loan it can also pay off a second mortgage that was used to buy the home. | Everything rate and term pays, plus cash to you from your equity. |
| **Cash to you at closing** | None, apart from a small, capped amount of incidental cash back (for example a rounding difference). | Yes — up to the program’s cash-out limit. |
| **Pricing** | Usually better than cash-out on the same file. | Lenders add pricing for cash-out risk. |
| **Maximum loan-to-value** | Higher — you can refinance with less equity. | Lower — you must leave more equity in the house. |
| **Best for** | A better rate, a different term, or getting off FHA or an ARM. | Paying off higher-interest debt, home improvements or other large expenses. |

### Not sure which one you need?

If the main goal is a lower payment or a faster payoff, rate and term is almost always the cheaper tool. If you also need money for debt or a project, compare a cash-out refinance with a [HELOC](https://valor.mortgage/what-is-a-home-equity-line-of-credit-heloc/) or a second mortgage that leaves your first mortgage rate alone — that is often the better answer when your current rate is low.

[Ask Christopher to compare them on your numbers →](https://valor.mortgage/book-your-appointment/)

## Rate and Term Refinance Options by Loan Type

Which version you can use depends on the loan you have now. Two of the government programs have “streamline” versions that skip much of the paperwork when you are refinancing a loan of the same type.

| Program | Who it is for | How it works |
|---|---|---|
| **Conventional rate and term** (limited cash-out) | Any homeowner who qualifies on credit, income and equity — including people refinancing out of FHA, VA or USDA. | Full qualification and usually an appraisal, though some files receive an appraisal waiver. Can pay off a second mortgage used to buy the home. No mortgage insurance at 20% equity or more. |
| **FHA Streamline Refinance** | Homeowners whose current loan is FHA. | Normally no appraisal and reduced documentation. Requires at least six payments made and 210 days since closing, an on-time payment history, and a *net tangible benefit* — the new loan has to lower your combined rate and mortgage insurance or move you to a more stable product. |
| **[VA IRRRL](https://valor.mortgage/va-irrrl/)** (Interest Rate Reduction Refinance Loan) | Veterans and service members whose current loan is VA. | Normally no appraisal; VA does not require income verification, though lenders may. The new rate generally has to be lower, and the costs of the refinance must be recouped within 36 months. Requires 210 days since the first payment due date and six payments made. The VA funding fee is 0.5% unless you are exempt, for example by receiving VA disability compensation. See our [VA loans](https://valor.mortgage/va-loans/) page. |
| **USDA Streamlined-Assist** | Homeowners whose current loan is USDA guaranteed or direct. | No new appraisal or property inspection. The loan must have been paid on time for the previous 12 months and the refinance must lower your monthly payment. See our [USDA loans](https://valor.mortgage/usda-loan/) page. |
| **FHA or USDA rate and term (full)** | Homeowners who need to change something a streamline cannot, such as removing a borrower. | Full qualification and an appraisal, on the same program you have now. |

Program rules are set by Fannie Mae, Freddie Mac, HUD, the VA and USDA, and individual lenders can add their own requirements on top. We confirm the current rules for your loan before you pay for anything.

## Will It Pay Off? The Break-Even Math

Every refinance has costs. The question is how long it takes for the monthly savings to pay them back, and whether you will still have the loan by then.

### Break-even in one line

`total refinance costs ÷ monthly savings = months to break even`

Hypothetical example: $4,800 in total costs ÷ $200 a month in lower principal and interest = **24 months**. If you expect to keep the loan longer than two years, the refinance pays for itself; if you might sell next year, it probably does not.

Two refinements matter. First, compare **principal and interest only** — taxes and insurance do not change because you refinanced. Second, if you are restarting a 30-year term on a loan you have paid for years, look at total interest over the time you will keep it, not just the monthly payment.

We put your current mortgage statement next to real lender pricing and show you the break-even month, the payment change and the total interest change before you apply. [Request a free refinance review →](https://valor.mortgage/book-your-appointment/)

## What a Rate and Term Refinance Costs

| Cost | What to expect |
|---|---|
| **Lender and broker fees** | Origination and underwriting charges, itemised on your Loan Estimate. As a broker we show you what each wholesale lender charges, so you can compare. |
| **Appraisal** | Required on most conventional and full refinances unless the file receives a waiver. Usually not required on an FHA Streamline, VA IRRRL or USDA Streamlined-Assist. |
| **Title and settlement** | A new lender’s title policy and the title company’s closing fee. |
| **Recording** | Fees to record the new mortgage, plus any Tennessee mortgage tax due on it. |
| **Prepaids and escrow** | Interest from closing to the end of the month and a new escrow cushion for taxes and insurance. Your old servicer refunds the balance of your old escrow account after the payoff — it is not lost. |
| **Program fees** | VA funding fee on an IRRRL (unless exempt), FHA upfront mortgage insurance on an FHA refinance, USDA guarantee fee on Streamlined-Assist. |

There are three ways to handle these costs: pay them at closing, **roll them into the new loan** if there is enough equity, or take a **lender credit** for a slightly higher rate (often called a no-closing-cost refinance). None of them makes the cost disappear; they change when you pay it. We price all three for you.

## How the Process Works

1. **Free review.** Send us your most recent mortgage statement. We confirm your loan type, rate, balance and how long you have had it, which tells us which options are open to you.
2. **Compare lenders.** We price your scenario across our wholesale lenders and show you the payment, break-even and total-interest picture for each realistic option — including the option of not refinancing.
3. **Apply and lock.** If the numbers work, you apply through our secure online application and we lock your rate.
4. **Documents and appraisal.** Income, assets and homeowners insurance for a full refinance, much less for a streamline. The appraisal is ordered if one is required.
5. **Close.** You sign with a title company. For most refinances of a primary residence, federal law gives you three business days to cancel before the loan funds; the old mortgage is paid off after that.

### About “skipping a payment”

Mortgage interest is paid in arrears, so your first payment on the new loan is usually due on the first day of the second month after closing. That can feel like a skipped month, but the interest for that period is collected as prepaid interest at closing or in the final payoff of the old loan. It is a timing difference, not free money.

## What You Will Need

- Your most recent mortgage statement
- Your homeowners insurance declarations page
- Photo ID
- For a conventional or full refinance: recent pay stubs and W-2s (or tax returns if self-employed) and recent bank statements
- For a VA IRRRL: your VA loan details; a new Certificate of Eligibility is usually not needed
- For an FHA Streamline or USDA Streamlined-Assist: your payment history on the current loan

## See Whether a Refinance Pays Off for You

Your current rate and balance against real wholesale pricing, your break-even month, and whether a streamline option fits — reviewed personally by Christopher, with no credit pull to get started.

[Schedule Your Free Refinance Review](https://valor.mortgage/book-your-appointment/)

## Related Guides

[All refinance options](https://valor.mortgage/refinance/)[What is a mortgage refinance?](https://valor.mortgage/what-is-a-mortgage-refinance/)[Refinancing to lower your payment](https://valor.mortgage/what-is-a-mortgage-refinance/#lower-payment)[15-year vs. 30-year mortgage](https://valor.mortgage/15-year-mortgage-vs-30-year-mortgage/)[Cash-out refinance](https://valor.mortgage/cash-out/)[Debt consolidation](https://valor.mortgage/debt-consolidation/)[Nashville mortgage broker](https://valor.mortgage/nashville-mortgage-broker/)[Mortgage calculator →](https://valor.mortgage/mortgage-calculator/)

## Frequently Asked Questions — Rate and Term Refinancing

### What is a rate and term refinance?

A rate and term refinance replaces your current mortgage with a new one to change the interest rate, the length of the loan, or both. The new loan pays off the old balance and can include closing costs, but you do not take equity out as cash. Lenders also call it a no cash-out or limited cash-out refinance.

### How is a rate and term refinance different from a cash-out refinance?

A cash-out refinance borrows more than you owe and pays the difference to you. A rate and term refinance only pays off what you owe plus the costs of the refinance, with at most a small, capped amount of incidental cash back at closing. Because no new money is being taken, rate and term refinances are usually priced better than cash-out and are available at higher loan-to-value ratios.

### When does a rate and term refinance make sense?

When the monthly savings repay the cost of the refinance well before you expect to sell or refinance again. Divide the total closing costs by the monthly savings to get the number of months to break even. Other good reasons are shortening the term to pay the house off sooner, moving from an adjustable rate to a fixed rate, or refinancing an FHA loan into a conventional loan to drop the monthly mortgage insurance.

### Can I refinance a VA or FHA loan without an appraisal?

Often, yes. The VA Interest Rate Reduction Refinance Loan (IRRRL) and the FHA Streamline Refinance are rate and term programs for loans that are already VA or FHA. Neither normally requires an appraisal, and both require less documentation than a full refinance. Each has a seasoning requirement (at least six monthly payments made and 210 days passed) and must leave you with a clear benefit, such as a lower rate or payment.

### Can closing costs be rolled into a rate and term refinance?

Usually, yes. Closing costs and prepaid items can generally be included in the new loan amount as long as the result stays within the program’s loan-to-value limit, or covered with a lender credit in exchange for a slightly higher rate. Either way you still pay them; rolling them in just changes when and how. We show both versions side by side on your Loan Estimate.

### Does Valor Mortgage refinance homes anywhere in Tennessee?

Yes. Valor Mortgage is licensed to originate residential mortgages anywhere in Tennessee, and refinances are handled by phone, text and a secure online application, with closing at a title company. We are licensed in Tennessee only.

**Last updated: 16 October 2026.** Refinance program rules are set by Fannie Mae, Freddie Mac, HUD, the VA and USDA and change from time to time. We review this page when they do.

**Valor Mortgage — Locally Owned, Tennessee Licensed**

Christopher Armantrout | 724 S Main St, Springfield, TN 37172

[615.671.9178](tel:+16156719178) | [christopher@valor.mortgage](mailto:christopher@valor.mortgage)

[Book Your Free Appointment →](https://valor.mortgage/book-your-appointment/)

Christopher Armantrout NMLS #1210804 | Valor Mortgage, LLC is powered by Encore Lending Group, LLC NMLS #1249911 | Equal Housing Opportunity | Licensed in Tennessee
724 S Main St, Springfield, TN 37172 | 615.671.9178 | christopher@valor.mortgage
This page is general information about refinancing and is not an offer or a commitment to lend. No interest rate, payment or savings is promised; the break-even example is hypothetical. Refinancing may increase the total finance charges you pay over the life of the loan. Program requirements are set by the agencies and investors named above and change without notice. All loans subject to credit approval, income verification, and property appraisal where required. Programs subject to change without notice.
[NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)

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## Contact Valor Mortgage

- Christopher Armantrout, Senior Loan Officer, NMLS #1210804
- Phone: [(615) 671-9178](tel:+16156719178)
- Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage)
- Office: 724 S Main St, Springfield, TN 37172
- [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/home-application/) · [Contact page](https://valor.mortgage/contact-us/)

Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity.

All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.