With a rate-and-term refinance, you exchange your current mortgage for a new one with different terms. You'll get a new interest rate and term length, hence the name "rate-and-term." Your monthly payment amount will also change, because a) you're paying a different amount toward interest each month, and b) refinancing into a longer or shorter term will affect how much you pay monthly. You may hear a rate-and-term refinance referred to as a "no-cash-out refinance." You can't use a rate-and-term refinance to tap into your home equity and receive cash — that would require a cash-out refinance. Multiple types of mortgages qualify for a rate-and-term refinance, including conventional, FHA, VA, or USDA.