This type of refinance rarely allows the borrower to walk away with any extra cash in hand when the process is complete. However, most programs do allow the borrower to use the new loan to pay off the existing loan, while rolling in any closing costs, escrows, and prepaid interest. Among the reasons to choose this type of refinance are: the opportunity to lower your monthly payment by taking out a lower interest rate on your new loan; the prospect of shortening the term of your 30-year fixed-rate loan by taking out a 15-year loan; and the chance to convert your adjustable-rate mortgage to a more stable fixed-rate mortgage. One important thing to note - if you have a HELOC or second mortgage on the property that was taken out after the original purchase, you most likely will not be able to use the rate-and-term refinance to combine the loans. Instead, you will need to use a cash-out refinance. When considering a rate-and-term refinance, your Mortgage Atlanta loan specialist will help you ensure that the cost and benefits are in line.