Change the terms of your current loan and replace them with more favorable ones. A rate and term refinance can give you more or less time to pay off your loan, a lower interest rate, or a different monthly payment. You get a new loan, pay off your old mortgage, and then make payments toward your new loan when you refinance.

Replace your old mortgage with a new one with a larger amount than owed on the previously existing loan. This helps you use your home equity to get some cash. For a conventional cash-out refinance, you can take out a new loan for up to 80% of the value of your home. You do not have to pay income taxes on the money you get through a cash-out refinance.

Fix your interest rate for a set period of time. This allows you to budget effectively and gives you peace of mind for that period; knowing your monthly payments won’t change. The downside is this loan comes with less features, therefore less flexibility. Most don’t allow you to make extra payments and redraw on the additional funds.