Equity is the amount of your home’s value minus what you currently owe. You’ll need at least 20% equity in your home to be eligible to tap into your equity or remove your PMI through refinancing. However, you can refinance with as little as 3% equity in your home.
Your credit score is another important factor to consider when refinancing. A good credit score means you’ll likely qualify for a lower interest rate, while a lower score could lead to a higher interest rate and may not allow you to refinance at all.
Refinance closing costs
Reason #1 - Get a lower interest rate
Reason #2 - Tap into your home equity
Conventional Loan 80% Loan to Value
FHA Loan 80% Loan To Value
Jumbo Loan 75% Loan To Value
VA Loan 100% Loan To Value
USDA Loan N/A
USDA loans do not allow a cash out refinance
Non-QM Loans 75%-80% Loan To Value
Non-QM loans such as bank statement loans, P&L loans and asset depletion programs may allow a maximum 75-80% loan to value