The equity in your home plays a major role in determining whether refinancing is an option. Home equity is typically calculated by subtracting the balance of your mortgage from your home's market value.

Best Course of Action:

• Start by estimating your home’s worth using multiple sources to get an accurate idea.
• Aim for an 80% loan-to-value ratio, but some programs allow higher ratios, typically with mortgage insurance.
• Be aware of upfront costs for refinancing and consider saving if you’re unsure about approval.