Not all refinances are the same! Your personal financial situation can dictate which option will work best for you. Rate-and-term refinance: In general, this type of refinance would change your monthly payment without changing your principal balance by changing the rate and/or term of your loan. For example, you could refinance a 15-year mortgage to a 30-year term if you want to lower your monthly payment. You could also take advantage of a changing rate environment and get a lower rate. Cash-out refinance: A cash-out refinance allows you take cash out through the equity in your home. Let’s say you have a $200,000 balance on your loan and you want to pay off $20,000 worth of high interest credit card debt. A cash-out refinance would allow you to take out a new loan worth $220,000 which includes the extra cash in hand. Talk to your loan officer about the types of refinances we offer. There are pros and cons for each.