Which statement about rate-and-term refinance is accurate?

Which statement about rate-and-term refinance is accurate?

• A. A rate-and-term refinance always withdraws cash from home equity.
• B. A rate-and-term refinance changes the interest rate and/or term without extracting new cash; used to reduce payment or shorten/extend loan term.
• C. A rate-and-term refinance increases the loan balance.
• D. A rate-and-term refinance guarantees a lower rate regardless of market.

Answer: (B)