Most lenders require a minimum credit score of 620 or higher for a conventional refinance, with higher scores often resulting in better interest rates.

For a standard rate-and-term refinance, many programs allow as little as 5% equity, but 20% equity is the key threshold to avoid paying for Private Mortgage Insurance (PMI).

Lenders typically look for a DTI ratio below 43%-50%, though this can vary based on other strong qualifying factors.

Conventional loans offer more flexibility for non-owner-occupied properties compared to government-backed options like FHA or VA loans.

Closing costs typically range from 1.5% to 6% of the total loan amount and can often be rolled into the new loan.

Homeowners often want to calculate how long it will take for their monthly savings to cover the initial closing costs to ensure they plan to stay in the home long enough for the refinance to make sense financially.

This is a common question as borrowers weigh lower monthly payments (30-year) against paying less interest over the life of the loan and building equity faster (15-year).

This calculation is a primary driver for a rate-and-term refinance.

This is a top search, as a conventional refinance allows you to cancel PMI once your equity reaches 20% (unlike FHA loans, where mortgage insurance typically lasts the life of the loan).

Borrowers want to access their home equity for home improvements or debt consolidation. Lenders typically require you to maintain at least 20% equity in the home after taking the cash out.

Homeowners often search for this option specifically to eliminate FHA's mandatory mortgage insurance premium (MIP).

Borrowers want to understand the difference between the actual rate and the Annual Percentage Rate (APR), which represents the true "all-in" cost of borrowing. The interest rate is the rate that Interest will accrue.