Conventional Refinance Wisconsin – Top 3 Questions Homeowners Ask
Conventional refinance Wisconsin programs are helping thousands of homeowners lower payments, shorten loan terms, and eliminate mortgage insurance in 2025.
But the process can still feel confusing. How much equity do you need? When's the right time to refinance? What credit score do lenders look for?
Let's break down the top three refinance questions Wisconsin homeowners ask - and clear up the confusion once and for all.
1. How Much Equity Do I Need to Refinance My Conventional Mortgage?
Most lenders prefer at least 20% equity in your home for a conventional refinance.
That's the magic number that allows you to:
- Avoid private mortgage insurance (PMI)
- Qualify for better rates
- Access cash-out options
If you're below 20% equity, you can still refinance - but PMI may continue until you reach that threshold.
In Wisconsin, home values have grown steadily since 2020, meaning many homeowners now have more equity than they realize. You can verify your home's equity by comparing your loan balance to your current appraised value.
For example, in our recent post on Refinancing Your New Construction Mortgage in Wisconsin, we showed how homeowners can use rising equity after a build to refinance into a lower conventional rate.
Example:
If your home is worth $350,000 and you owe $260,000, you have about 26% equity - enough for a no-PMI refinance.
Even if you're short of 20%, my team can review your file and determine the most cost-effective refinance strategy for your situation.
2. When Is the Right Time to Refinance My Conventional Mortgage?
There's no one-size-fits-all answer, but here's a quick guideline:
If you can reduce your interest rate by at least 0.5% to 1.0% and plan to stay in the home for several years, it's usually worth refinancing.
Why timing matters:
- Mortgage rates fluctuate based on the economy, inflation, and Federal Reserve policy.
- Wisconsin's home values and refinance opportunities have remained strong into 2025.
- Refinancing early in the year may lock in savings before rates shift again.
If you currently have an ARM (adjustable-rate mortgage), refinancing into a fixed conventional mortgage can protect you from future rate increases. You can read more about rate options and market timing in our Fannie Mae RefiNow Guide.
Even small rate drops can save homeowners thousands over time - especially when combined with PMI removal or shorter terms.
3. What Credit Score Do I Need to Refinance a Conventional Loan?
For most conventional refinances, lenders prefer a minimum credit score of 620, but the best rates are available to borrowers with scores 740 and above.
Here's how your score impacts your refinance:
| Credit Score | Loan Type | Typical Rate Range | Notes |
|---|---|---|---|
| 620 - 659 | Standard Conventional | Slightly higher rate | May need added equity |
| 660 - 719 | Good Credit | Competitive rate | Often qualifies for PMI removal |
| 720+ | Excellent Credit | Best rates | Eligible for all term options |
If your credit has improved since your last mortgage, a refinance could unlock better pricing and lower payments - even if you keep your same term.
If you're unsure how your score compares or want to see how it affects your refinance options, check out Freddie Mac's official refinance questions guide for clear benchmarks and examples.
Bonus Tip: The "Refinance Math" Test
Ask yourself two quick questions:
- Will I save money monthly and long-term (after closing costs)?
- Do I plan to stay in this home long enough to make the savings worthwhile?
If both answers are "yes," it's time to refinance.
A quick mortgage review can tell you exactly how much you could save with today's conventional refinance Wisconsin rates.
Documents You'll Need for a Conventional Refinance
To get started, you'll typically need:
- Mortgage statement
- Pay stubs or W-2s
- Homeowner's insurance declarations page
- Bank statement showing funds or reserves
- Photo ID
Once we have those, we can usually close in about a week - fast, simple, and fully managed by my team.
Related Reading
You can also explore how construction and refinance options work together in our
Construction-to-Permanent Loan Wisconsin Guide.
Many homeowners build first, then refinance into a conventional fixed loan once the home is complete and equity improves.
Ready to Review Your Conventional Refinance Options?
Rates are still competitive - and Wisconsin home values remain strong.
Whether you're lowering your payment, removing PMI, or shortening your term, I'll help you compare options and lock in the best rate for 2025.
Let's make refinancing simple, fast, and financially smart.
Contact & CTA Block
Adam Zeman - NMLS #870441
Union Home Mortgage
Serving Milwaukee, Waukesha & all of Wisconsin
📞 414-975-2654
📧 azeman@uhm.com
🌐 www.mkemortgage.com
📝 Start Your Loan Application
💬 Chat with My 24/7 Mortgage & Real Estate Assistant