Quick Summary: A rate‑and‑term refinance lets West Palm Beach homeowners replace their current mortgage with one that has a better interest rate, shorter term, or both—without taking cash out. It’s typically worth considering when the new rate is meaningfully lower, the total loan costs are recoverable within a reasonable timeframe, or the new term better supports long‑term financial goals. Palm Beach County homeowners should compare payment savings, closing costs, and the break‑even point before deciding. CTC Mortgage helps evaluate these factors and determine whether refinancing delivers real financial benefit.

What Is a Rate-and-Term Refinance?

A rate‑and‑term refinance (also called no‑cash‑out refinance) replaces your current mortgage with a new one focused on improving your interest rate, monthly payment, or loan term. Unlike a cash‑out refinance, you’re not withdrawing equity—your goal is a more efficient loan structure.

CTC Mortgage works with West Palm Beach homeowners to compare payment scenarios, break‑even timelines, and long‑term savings.

When Refinancing Is Worth It

Refinancing is usually worth considering when:

• Your new interest rate is meaningfully lower
• You plan to stay in your home long enough to recover closing costs
• You want to switch from an adjustable‑rate to a fixed‑rate mortgage
• You want to shorten your loan term and build equity faster
• Your current loan has mortgage insurance you can remove through refinancing

In Palm Beach County—where property values and taxes fluctuate—locking in predictable long‑term savings can be especially valuable.

How to Calculate the Break-Even Point

Your break‑even point tells you how long it takes for monthly savings to cover your refinance costs.

Simple break‑even formula:

Break‑Even (months) = Total Closing Costs ÷ Monthly Savings

Example: If refinancing costs $4,000 and saves you $150 per month:

$4,000 ÷ $150 = 26.6 months

You’d break even in about 27 months. If you expect to stay in your West Palm Beach home longer than that, the refinance may make financial sense.

Changing Your Loan Term

30-Year → 30-Year Reset

You reset your amortization period, which lowers the payment but may increase total interest paid unless you make extra principal payments. Helpful for cash‑flow relief.

30-Year → 15-Year Term

Interest rate usually drops, and you pay the loan off much faster. Monthly payments increase but long‑term interest cost decreases dramatically.

ARM → Fixed-Rate

Ideal for stability—many Palm Beach County homeowners refinance into fixed‑rate loans to avoid future rate adjustments.

Documents West Palm Beach Homeowners Should Gather

Rate‑and‑term refinances require standard verification documents:

• Recent mortgage statement
• Homeowners insurance details
• Pay stubs and W‑2s (or tax returns if self‑employed)
• Bank statements for asset verification
• Property tax bill
• Government‑issued ID

CTC Mortgage guides borrowers through each requirement to keep the process fast and predictable.

Estimate Savings with Online Tools

Before applying, run payment comparisons and break‑even calculations using: Mortgage Calculators

Explore Local Refinance Resources

• West Palm Beach Rate-and-Term Refinance Guide
• CTC Mortgage Refinance Loans Overview

Start Your Rate-and-Term Refinance with CTC Mortgage

If you’re a homeowner in West Palm Beach or anywhere in Palm Beach County, CTC Mortgage can help you review personalized numbers, compare rates, and decide whether refinancing is financially worthwhile. Contact us today to get started.