Once you have purchased a home and are making monthly payments, you are in the process of building equity. In an effort to save money, you may find that a refinance is in order. A "rate and term refinance" refinances your existing mortgage at a better rate, (if rates have lowered since the time of your original mortgage), hence a lower payment.

A "no cash-out of equity refinance" allows for a loan amount that is no more than your current mortgage balance, plus the ability to finance your closing costs and pre-paids. You could refinance the existing loan balance up to 95% of the property's value for mortgages under $252,700 and up to 90% of the value on mortgages from $252,701 to $500.000.