Refinancing Is on the Rise—Here’s What You Need to Know
Refinancing activity is projected to rise by nearly 48% this year, and it’s no surprise—many employees are realizing that their mortgage can be a powerful tool for improving their overall financial wellness strategy.
But is refinancing right for you?
Whether you're thinking about lowering your monthly payment, paying off debt, removing mortgage insurance, or accessing your home’s equity for renovations, a refinance could help. And through your Employee Homeownership Program, you can get expert guidance and exclusive savings on closing costs to make the process easier and more affordable.
Why People Are Refinancing Right Now:
Here are the most common reasons employees are exploring a refinance:
- Debt Consolidation: Replace high-interest credit card or loan payments with one manageable mortgage payment.
- Home Improvements: Use a cash-out refinance to upgrade your home without dipping into savings.
- Life Changes: Divorce, inheritance, or changes to your household can require updating your loan and title.
- Shorten Your Loan Term: Pay your home off faster and save thousands in interest.
- Remove Mortgage Insurance: Once you’ve built 20% equity, you may qualify to eliminate PMI and lower your payment.
- Stabilize Your Rate: If you have an ARM, switching to a fixed-rate loan gives you predictable monthly payments.
What Lenders Look at During a Refinance:
Just like when you first applied for your mortgage, lenders will review several factors before approving a refinance:
- Credit Score: Most lenders want to see a score of 620 or higher, though a higher score can help you qualify for better rates and terms.
- Home Equity: Ideally, you’ll have at least 20% equity in your home—this can impact whether you’ll need to pay mortgage insurance.
- Debt-to-Income Ratio (DTI): Lenders will compare your monthly debt payments to your gross income. A DTI below 43% is often required.
- Employment & Income Stability: Just like a home purchase, lenders want to see steady, reliable income.
- Home Appraisal: The current value of your home will determine how much equity you have and whether you’re eligible for certain refinance programs.
Bottom Line
Refinancing is a personal decision, and everyone’s situation is different. That’s why your Employee Homeownership Program offers a free refinance analysis—we’ll walk you through your options and help you understand if refinancing makes sense for you. You’ll also gain access to trusted mortgage professionals, exclusive savings, and expert advice to make the process easier.
Schedule your free refinance consultation today and take the first step toward a stronger financial future.
SupportSquad@AdvantageHomePlus.com | (800)511-2197
The information contained and the opinions expressed in this article are not intended to be construed as investment advice. Advantage Home Plus does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.
Category: Refinance
