The simple truth is this — COVID-19 has turned everyone’s lives upside down. Schools, businesses, non-profits all reeling as they find ways to adapt to this temporary normal.

Is Now the Right Time to RefinanceAnd the housing market is no exception.

But within that uncertainty exists some opportunity. As states are beginning the process of “reopening” their economies, more people are thinking of taking advantage of current historically low interest rates for the purpose of refinancing their home.

Just this past week, mortgage rates hit another historic low with 30-year fixed-rate loans averaging 2.98 percent and 15-year fixed-rate loans averaging 2.48 percent, according to Freddie Mac.

One important question to ask is “How much equity do I need for a refinance?”

Equity is simply the difference between your home’s value and what you owe on your existing loan.

A property worth $500k and $250k left on your loan = 50% equity

If you have less than 20% equity, lenders may require you to purchase private mortgage insurance (PMI). Once you are above 20% equity, you can usually refinance to remove PMI.

Obviously, the more equity, the better. The number “needed” varies from one case to the next. It’s a good reason why we suggest reaching out to us at Total Lending Concepts so we can help determine your best next steps.

Should I refinance now?

It’s the question so many are asking right now. And even with low interest rates, the answer isn’t necessarily a definitive “yes.” If you are planning to move in the near future, the cons may outweigh the pros.

And it’s also important to remember that when you refinance, you are actually getting an entirely new loan. So you’ll have to go through the qualification process to ensure your financial position and credit score is where it needs to be.

Refinancing could save you tens of thousands of dollars and reduce your monthly payment in the process. Or it could end up being more trouble than you are prepared to deal with. You won’t know until you ask…and we are ready to answer your call at Total Lending Concepts. Learn more at or give us a call at 573-303-3844.