Refinancing Is on the Rise: Why 4 Out of 5 Homeowners Are Considering It in 2025
With refinancing activity projected to increase by 48% this year, more homeowners are exploring how refinancing can help them achieve their financial goals. According to industry reports, 4 out of 5 homeowners will consider a refinance in 2025 - but it’s not just about lowering interest rates. Many are taking advantage of strategic refinancing options to improve their financial flexibility, reduce monthly expenses, or make their homes work better for them.
Here are the top reasons homeowners are refinancing this year and how it could benefit you:
✅ Debt Consolidation: Free Up Cash & Reduce Monthly Expenses
Many homeowners are using refinancing to consolidate high-interest debt, including credit cards, personal loans, and medical bills. This strategy allows them to:
- Lower their monthly debt payments, creating room in their budget.
- Redirect those savings toward retirement, investment accounts, or a financial safety net.
- Improve credit scores by reducing overall debt utilization.
✅ Home Improvements: Build Equity & Improve Your Living Space
A cash-out refinance can provide funds for renovations or upgrades, allowing homeowners to:
- Increase their home’s value while building equity.
- Enhance their lifestyle with modern upgrades and energy-efficient improvements.
- Avoid the cost of moving by customizing their current home instead of buying another.
✅ Life Changes: Adjust Homeownership for New Circumstances
Significant life changes—marriage, divorce, estate planning, or transitioning ownership—often require adjusting who is on the loan and title. Refinancing allows homeowners to:
- Remove a co-borrower (such as an ex-spouse) and establish sole ownership.
- Add a spouse, family member, or partner to the mortgage.
- Restructure the loan terms to align with new financial circumstances.
✅ Lowering the Interest Rate: A Long-Term Financial Advantage
While rates aren’t at historic lows, some homeowners still benefit from refinancing to:
- Secure a better rate than their current loan if market conditions improve.
- Reduce long-term interest payments, freeing up money for other financial goals.
- Stabilize monthly payments by switching from an adjustable-rate mortgage (ARM) to a fixed-rate loan.
Bottom Line:
Deciding whether to refinance is a personal decision; no two situations are the same. Whether you're looking to lower your monthly payments, consolidate debt, fund home improvements, or adjust to life changes, refinancing can be a powerful financial tool—but it’s essential to make sure it’s the right move for you.
Through your Employee Homeownership Program, you can access a free refinance analysis, where we’ll help you evaluate your options, run the numbers, and determine if refinancing aligns with your financial goals. Plus, by using your benefits, you can save money on lender closing costs, making the process even more affordable.
Get expert guidance and exclusive savings—schedule your free consultation today!
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
