When homeowners think about refinancing a mortgage, they don’t always distinguish between various refinance options. A traditional refinance, known as a “rate-and-term refinance” or “non-cash-out refinance,” refers to refinancing a mortgage into a new loan with a new interest rate. You’ll also have different loan terms, such as the length of the loan and whether the rate is fixed or adjustable. In this article: Rate-and-term refinance: How it works A rate-and-term refinance refers to a mortgage refinanc ...