How much equity do I need to refinance?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
For a rate-and-term refinance, often very little — sometimes none on FHA and VA streamlines. A conventional rate-and-term usually wants some equity, and a cash-out refinance requires you keep 20% equity (25% on rentals).
Florida's appreciation means many owners have more equity than they realize. We'll pull a value estimate and tell you which refinance your equity supports.
Depends on the type
For a standard rate-and-term refinance, many lenders want at least 5% to 20% equity. For a cash-out refinance, you usually need to keep at least 20% equity after taking cash.
Streamline refinances, like FHA and VA, often need little or no equity because they skip the appraisal.
Checking your equity
Your equity is your home's current value minus what you owe. Florida's rising values have given many owners more equity than they realize.
We will estimate your equity quickly. Apply now and we will tell you which refinance you qualify for.