Many uses
A no cash-out refinance can be used for many things, but added benefits include lowering your monthly principal and interest payments.
With a no cash-out refinance, you refinance your existing mortgage for less than or equal to your current loan balance. You receive no money at your closing, but it can allow you to lower your interest rate or shorten the full loan term.
Shorter loan term
If you refinance to a shorter loan term, you may be able to pay off your mortgage quicker, saving you money on interest for the life of the loan.
Financial benefits
If your credit score or financial situation has improved since obtaining your original mortgage, you may qualify for a lower interest rate on your new loan, which can lower your monthly mortgage payment, saving you money in the long run.
