What are the main refinance structures: rate-and-term, cash-out, and streamline, and what rules change?

What are the different types of refinancing?

You want to understand the different refinance structures and how the rules change for each type. The main refinance options are rate-and-term, cash-out, and streamline refinances, and each has different qualification requirements and loan-to-value limits.

Rate-and-term refinancing replaces your current mortgage with a new one at a different interest rate or loan term. You can borrow up to your current loan balance plus closing costs. Cash-out refinancing lets you borrow more than you owe and take the difference in cash. Lenders typically require more equity for cash-out refinances—commonly 80% loan-to-value compared to 95% for rate-and-term. Streamline refinances are simplified programs for government loans like FHA or VA that skip appraisals and reduce documentation.

Check your current loan balance, home value, and credit score to see which options work for your situation. Rate-and-term refinances often have the most flexible qualification requirements, while cash-out refinances require stronger credit scores and more equity. Streamline programs depend on your existing loan type—FHA borrowers can use FHA Streamline, VA borrowers can use VA IRRRL.

Share your refinance goals with lenders and they can walk you through which structure fits your situation and current qualification requirements.