---
title: "Refinance — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/refinance/
---

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Mortgage & lending[All terms starting with R](/glossary/#letter-R)

# Refinance

Also called: refi, rate and term refinance

Replacing an existing mortgage with a new one to change the rate, the term, or both.

A rate-and-term refinance changes the pricing or payoff schedule without taking cash out. Because it is a new loan, it comes with new closing costs and new underwriting.

The decision is a break-even: the costs divided by the monthly saving gives the months required to come out ahead. A lower rate that resets you to a fresh thirty-year schedule can still increase total interest paid.

## Put a number on it

This term is an input in the calculator below.

- [Refinance Savings CalculatorModel payment changes and break-even timing for a refinance.](/calculators/refinance/)

## Related terms

- [Cash-out refinanceRefinancing for more than you owe and taking the difference in cash, converting equity into spendable funds.](/glossary/cash-out-refinance/)
- [Streamline refinanceA reduced-documentation refinance available on some government-backed loans when the result benefits the borrower.](/glossary/streamline-refinance/)
- [Closing costsThe lender, title, and third-party fees due at closing: separate from your down payment.](/glossary/closing-costs/)
- [RecastRe-amortizing an existing loan after a large principal payment, lowering the monthly payment while keeping the rate and term.](/glossary/recast/)

## Go deeper

- [Refinance options](/refinance/)
- [When a lower rate still loses](/blog/refinance-break-even-when-lower-rate-loses/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)