Why Refinance Activity Just Hit a 3-Year High in 2025

By Kyle Koller

Producing Branch Manager of UMortgage West - The #1 Producing Team at UMortgage

Refinance activity has hit its highest point in three years, and it’s not because mortgage rates are at historic lows. Homeowners are tapping into record equity to fund projects, pay off debt, and create new sources of income.

One of my clients recently pulled $85,000 from their home equity to finish a basement and turn it into a legal accessory dwelling unit (ADU). That single move now brings in about $1,800 per month in rental income. It’s a good use of equity that increased property value and added steady cash flow.

Here are three big reasons more homeowners are exploring equity options right now:

Equity levels are at record highs. Over the past few years, property values have climbed sharply, leaving many homeowners with tens of thousands of dollars in equity. This “hidden wealth” can be accessed through refinancing.

Smart ways to use your equity. Cash-out refinances can be used strategically to strengthen finances and improve your lifestyle. Popular uses include:

● Renovations that add value. Home upgrades not only improve your daily life but can boost your home’s market value. For example, a $40,000 kitchen remodel can add $30K to $35K in value while making your home more appealing to buyers.

● Debt Consolidation. With credit card interest rates averaging over 20%, rolling balances into a home equity loan at 7% can save hundreds each month and thousands over time.

● Bridge financing or buying before you sell. Equity can give you the funds to purchase your next home without waiting for your current one to sell, helping you make stronger, non-contingent offers in competitive markets.

Current market conditions make it timely. High property values, the possibility of rate drops, and financial pressure from inflation are driving today’s refinance activity. Acting now could help you position yourself to benefit if rates ease later in 2025.

That’s why I’m offering a free, no-obligation equity review and mortgage rate quote. You’ll see what you can access, what your payments could look like, and how to put your equity to work.

Pre-qualification today could also give you an edge. If rates dip this fall as many predict, buyer demand will surge, and competition could heat up quickly. Being prepared means you can move fast without stress.

The process is simple, secure, and doesn’t impact your credit the way many fear. Just share a few details, and you’ll receive a personalized quote with clear loan options, no hidden fees, no surprises.

If you’d like to walk through your numbers, you can book a free call with me using this link: Schedule a 1:1 call with Kyle. You can also reach me at (801) 687-2018 or kkoller@umortgage.com. When used wisely, your home’s equity can be one of your most powerful financial tools. I’ll help you figure out how to use it wisely.