Rate & Term - Oz Lending

Rate & Term

What is Rate & Term?

Rate & Term allows you to change the interest rate and/or term for existing mortgages. It works by first paying off the unpaid principal balance of the existing “first mortgage” (including any prepayment penalties).

Who can utilize this type of loan?

Anyone with a current mortgage and also people who have a construction loan looking to improve their current home loan rates and terms. This loan must be used for single-closing construction-to-permanent transactions, paying for construction costs to build a home, which may include paying off an existing lot lien.


The new loan can be used to finance the payment of closing costs, points, and prepaid items. With the exception of real estate taxes that are more than 60 days delinquent, the borrower can include real estate taxes in the new loan amount since:

  • the real estate taxes must be paid in full through the transaction, and
  • payment for the taxes must be disbursed to the taxing authority through the closing transaction, with no funds used for the taxes disbursed to the borrower.

You can also:

  • Buying out a co-owner pursuant to an agreement;
  • Paying off a subordinate mortgage lien (including prepayment penalties) used to purchase the subject property. The lender must document that the entire amount of the subordinate financing was used to acquire the property; or
  • Paying off the unpaid principal balance of PACE loans and other debt used for energy-related improvements. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties for more information
Loan Requirements
Min. Credit score:
Min. Down Payment:
Loan Features
  • Buyout co-owners
  • Payoff subordinate mortgage liens
  • Improve term and interest rate
  • No seasoning requirements

Disclaimer: This is not an approval or a commitment to lend. This information is provided in an effort to better inform you about the loan products we offer at Oz Lending. Rates, terms and conditions are subject to change without notice.

Whether it’s refinancing, buying a new home, building a home, or applying for home equity loans or second mortgages; we have an experienced, around the clock, qualified team of accessible “Wizards” who are with you every step of the homeownership process.

3009 112th Ave NE
Suite 200
Bellevue, WA 98004

NMLS ID 27830

Axia Home Loans does not represent HUD or FHA and the information provided here was not authored, approved, or endorsed by HUD or FHA. Axia Home Loans is the sole author and originator of this information. An FHA home loan is a mortgage originated by a lender that is insured by the Federal Housing Administration. Our business services or products do not originate from HUD or FHA

Copyright © 2024 – Axia Home Loans is a registered trade name of Axia Financial, LLC – NMLS# 27830, 3009 112th Ave NE, Suite 200, Bellevue, WA 98004

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