Considering Refinancing Your Home Loan?

Have you purchased property since 2022, when mortgage interest rates jumped from the 3% range to almost 8%? If so, you could be among millions of Americans who could benefit from refinancing the loan on your primary residence, vacation home or investment property.

As of May 2025, nearly 7 million borrowers had home loans with a mortgage rate at or above 6%. Refinancing with a lower interest rate could help them shave thousands of dollars off the principal balance of their existing mortgage, or put cash back in their pocket. This blog will briefly address what a refinance transaction entails and important considerations that property owners can use to decide if this option is right for them.

WHAT IS A REFINANCE?

A refinance transaction, or “refi” for short, involves replacing a current mortgage loan with a new one for terms that are more favorable to the borrower, in either the short or long term.

COMMON REASONS TO REFINANCE

1. Lower a monthly mortgage payment
2. Pay off a mortgage sooner
3. Make home improvements
4. Pay down debts
5. Cover major expenses

COMMON TYPES OF REFINANCE TRANSACTIONS

Rate-and-Term Refi

In the long run, locking into a lower interest rate on a 30-year fixed mortgage loan can help homeowners reduce their monthly mortgage payment. For example, if you obtained a $400,000 mortgage loan at a 7.6% interest rate, refinancing with an interest rate around 6.0% could potentially lower your monthly mortgage payment from $2,824 to $2,398 – a savings of over $400 a month and $5,000 a year! A Rate-and-Term refi option also gives the borrower the flexibility to pay off the loan sooner with a shorter-term loan, such as a 15-year fixed.

Cash-out Refi

Many homeowners opt for a cash-out refinance because it allows them to leverage home equity to refinance their mortgage and receive a lump-sum amount of cash for things they want or need now. For example, many homeowners use cash-out refis to help pay for home renovations or repairs. Others use them to pay down credit card debt, or cover major expenses, like medical bills, college tuition or car payments.

ELIGIBILITY REQUIREMENTS

Although there is no official limit on the number of times you can refinance a home loan, some lenders have waiting periods and most require applicants to meet common eligibility criteria:

• Loan history: Lenders generally require a seasoning period of at least six to 12 months since the original loan closed.

• Credit score: In general, the higher your credit score, the better your chances of being approved for the loan and getting a lower interest rate. Credit score requirements vary depending on the type of loan and lender, but most lenders require a minimum credit score of 580 to qualify for refinancing and 620 to take cash out.

• Equity: Lenders prefer that borrowers have at least 20% equity in their home. It is possible to refinance with less equity, but at a higher interest rate.

• Debt-to-income (DTI) ratio: Lenders weigh your monthly financial obligations against your gross income to determine if you can afford the loan. Most lenders prefer a DTI ratio below 50%.

• Loan-to-value (LTV) ratio: Lenders divide the amount you owe on your mortgage by the appraised value of the property. In general, the lower your LTV ratio, the lower your interest rate.

• Cash reserves: Refinances often require at least two-to-six-months’ worth of mortgage payments in the bank. The amount of reserves will depend on the type of property being refinanced (e.g., primary residence or investment property) and the type of loan.

• Income verification: Lenders want to know you have a stable source of income and often require proof of it from the last two years.

• Closing costs: Like all real estate transactions, refinances incur closing costs. Click here to learn more.

OTHER CONSIDERATIONS

• When is the best time to refinance?

The answer depends on your personal situation. However, if the interest rate has fallen considerably lower (generally, at least 1%) than your current home loan, you may want to explore products from various lenders to find one that fits your needs. You may also want to consider how long you’ve had your existing mortgage loan and how long you intend to own the property to determine whether the benefits of refinancing will outweigh the costs.

• Are interest rates expected to go lower?

It’s always best to do your research. Economists continually analyze economic data to predict how the Fed will adjust the federal funds rate, which in turn, drives market rates. Joel Kan, Vice President and Deputy Chief Economist for the MBA, expects the Fed will make two more interest rate cuts this year at .25% each and four more in 2025. If the stars align, we could see rates decline below 6% next year…but nobody knows for sure what the future holds.

• Are there any reduced rates available for refinance transactions?

Some lenders may offer rate reductions for enrolling in a particular program. Others might offer rate buydowns or discount points, which allow borrowers to make a one-time payment at closing that lowers their interest rate on a mortgage.

If eligible, homeowners might save on title and escrow fees from a reissued title insurance policy from the same underwriter. Some lenders and title companies in certain states may also offer rate reductions for retired and active-duty military members.

If or when you’re ready to refinance, Old Republic Title’s dedicated title and closing teams are here to protect your investment and provide a smooth closing experience. Enjoy top-notch products and services that prioritize your needs and help facilitate secure refinance transactions. To find an Old Republic Title team in your area, visit oldrepublictitle.com.

Why Title Insurance Matters: A Cautionary Tale

Can you imagine losing your home because someone else has a legal claim to it? It’s rare—but it happens. In fact, a significant percentage of title searches uncovers an issue that could affect property ownership. While many of these problems are resolved before closing, some remain hidden until it’s too late. That’s where Owner’s Title Insurance comes in.

The Real Risk Behind Hidden Title Defects

Title defects can include anything from clerical errors and undisclosed heirs to unpaid liens or forged documents. These issues can threaten your legal ownership and cost thousands in legal fees—or worse, your home.

The following story, though hypothetical, is based on real scenarios that have led to more than 800,000 cumulative paid title insurance claims* across the industry.

Betty’s Story: A $20,000 Mistake

Betty Buyer, a recent widow, purchased a $100,000 home using $50,000 of her savings and a $50,000 loan. Her lender required a Loan Policy of Title Insurance (commonly referred to as a lender’s policy), which protects the lender’s interest—but Betty declined to purchase an Owner’s Policy for herself. Three weeks after moving in, Betty received devastating news: a $20,000 judgment lien had been recorded against the property just before her purchase. The lien stemmed from a lawsuit against the seller, Sammy, who had since left the country.

Because the lien on Sammy’s property was recorded before Betty’s deed, the creditor could legally foreclose on her home to recover the debt. Betty’s lender’s policy did not cover her personal investment, and without an owner’s policy, she had no legal protection or financial recourse. Betty now faced the impossible choice of paying the $20,000 herself—or losing her home.

What Went Wrong?

The lien was a judgment lien from a civil lawsuit, one of several types of legal claims that can be placed on a property. Others include:

• Mechanic’s Liens – for unpaid contractor work
• Tax Liens – for unpaid property or income taxes
• Homeowner’s Association (HOA) Liens – for unpaid dues or assessments

These liens are recorded in the public record, but they can be missed during the title search due to clerical errors, improper filings or timing. In this case, the judgment lien against the prior owner was recorded after the title search was conducted, but before the transfer of property ownership was finalized, giving Sammy’s creditor a prior stake in Betty’s property.

How Owner’s Title Insurance Protects You

When you buy a home, your lender requires a Loan Policy of Title Insurance to protect their investment. But that policy doesn’t protect your ownership—only an Owner’s Policy of Title Insurance does that.

An owner’s policy:

• Protects you from financial loss—including defense costs and legal expenses—if your ownership is ever challenged due to covered title defects, such as undiscovered liens that existed prior to your property purchase, up to the policy limits.
• Stays in effect as long as you or your heirs own the property.
• Is a one-time cost, typically less than your annual auto insurance premium.

The Cost of Skipping Coverage

In 2024 alone, the title insurance industry spent over $673 million defending homeowners and paying claims. Without coverage, homeowners like Betty are left to fend for themselves—often at great personal and financial cost. Buying a home is the biggest investment most people ever make. Skipping owner’s title insurance to save a few bucks can be a gamble with life-changing consequences.

Final Thoughts

Title insurance may not be top of mind when buying a home, but it should be. It’s a small price to pay for peace of mind and long-term protection. Don’t let a hidden title defect turn your dream home into a legal nightmare.

To learn more about how an Owner’s Policy of Title Insurance can protect your property rights, contact your local Old Republic Title representative or agent. With over a century of experience and a claims-payment ratio among the industry’s best we’re here to help you safeguard your investment.

* Based on combined Form 9 Annual Statements for all insurers within each family, as compiled by the American Land Title Association (ALTA) in the 2024 American Title Insurance Industry Data Book.

13 DIY Staging Tips for Home Sellers

If you’re considering selling your home, you may want to think about staging it. According to the National Association of REALTORS^® 2025 Profile of Home Staging, 83% of buyers’ agents said staging a home made it easier for buyers to visualize the property as a future home.

Don’t have money in the budget for a professional staging team? No need to worry! You can achieve beautiful results on your own. We’ve compiled 13 do-it-yourself (DIY) staging tips to help you showcase your home and impress potential buyers:

1. Maximize curb appeal: Your home exterior is just as important as the interior. It needs to look clean and fresh, which may require a good pressure washing or fresh coat of paint. Make sure driveways and walkways are debris-free and the lawn, trees and shrubs are well maintained. To lure in house hunters, consider painting the front door a bright color, adding colorful flowers or dressing up the front porch with seating.
   
   
2. Clear out the clutter: Visitors should be able to view the features of your home without being distracted by all of your stuff. Too much clutter can hide your home’s true potential and make it appear smaller. To avoid these mishaps, clear out non-crucial items, such as paperwork, children’s toys and knick-knacks. You may find it beneficial to store them offsite in a storage unit or a relative’s garage.
   
   
3. Clean, clean, clean: Now’s the time to perform that deep clean you’ve been putting off for months. From cleaning windowsills and blinds to scrubbing tile grout and dusting baseboards, every inch of your home should be sparkling clean. Carpets, rugs and upholstered furniture may need steam cleaning, especially if you have pets. If it’s too much work or you don’t have enough time, consider hiring professionals.
   
   
4. De-personalize: One of the most effective ways to help buyers connect with the property is by stashing away personal items. Remove family photographs and memorabilia from the walls and refrigerator. Bathroom countertops should remain free of personal items, such as medications, toothbrushes and facial products.
   
   
5. Go neutral: Although bright-colored walls are a great way to showcase your personality, neutral tones like beige, tan, soft gray and warm white make it easier for potential buyers to envision their own style. This doesn’t mean you can’t throw in bold accessories here and there. In fact, strategic pops of color may help visitors feel happy and excited.
   
   
6. Let the good aromas in: Never cook a pungent meal within days of a scheduled tour or open house, especially fish or shellfish. Welcome house hunters with subtle yet inviting scents. Try using a diffuser or candle, simmering fruits or herbs on the stovetop, or baking cookies in the oven. If the weather permits, open windows to allow fresh air to flow through the home.
   
   
7. Lighting makes a difference: Without proper lighting, rooms can appear dark and cramped. A well-lit space is much more inviting to house hunters. Take advantage of the property’s natural light by pulling back curtains and opening up blinds. Combine overhead lighting with table and floor lamps to create multiple layers of light and add visual depth.
   
   
8. Rethink furniture: Each room in the home needs to feel as big and bright as possible, which may require omitting or rearranging furniture. Avoid placing bulky pieces together, in front of windows or in areas that obstruct traffic flow. If your furniture is worn, stained or dated, invest in a slipcover as a cost-effective update, or consider renting pieces that complement your space.
   
   
9. Mirrors are a must-have: Strategically placed mirrors can expand visual space and bring in more reflective light. Hanging a mirror across from a window is the perfect solution for adding natural light to the room. Generate visual interest by hanging a mirror above a fireplace, sofa or console table.
   
   
10. Show off your closet space: Don’t overlook closets. Ample storage space is essential for most buyers. To make your closet look more attractive, pare down clothing, keep the floor clear, incorporate matching hangers and arrange your clothes by color.
    
    
11. Give the kitchen a facelift: The kitchen is often considered one of the most important rooms in a house, and it needs to be bright and welcoming. If your kitchen is dark or dated, painting the cabinets a light color and updating the hardware are easy and inexpensive ways to freshen it up. Keep in mind that visitors may open your drawers and cupboards, so make sure the contents are tidy and not overcrowded. Adding fresh flowers or a bowl of fruit also adds charm.
    
    
12. Don’t overlook bathrooms: When it comes to decorating your bathroom, think spa. Dress up towel bars by layering plush new towels in white or light neutral tones. If counterspace allows, fill glass jars with cotton balls, Q-tips and handmade soaps for a nice decorative touch.
    
    
13. Create an inviting primary bedroom: The primary bedroom should exude a relaxing atmosphere that appeals to all genders and ages. Dress the bed with luxury linens and layered pillow combinations. Add artwork that evokes peace and tranquility such as landscapes, ocean shorelines or desaturated photos in light tones.
    

While DIY staging may seem like an added layer of stress, it could make the difference between a swift sale or stale listing. It may also help you to get top dollar. For information about title insurance on the purchase of a new home or if you have questions about the real estate closing process, contact an Old Republic Title representative today.

Copyright ©2025 “2025 Profile of Home Staging.” NATIONAL ASSOCIATION OF REALTORS^®. All rights reserved. Reprinted with permission. May 6, 2025. https://www.nar.realtor/research-and-statistics/research-reports/profile-of-home-staging

Commercial Market Snapshot Q1 2025  

MARKET OVERVIEW

The fourth quarter of 2024 marked a return to positive and broad Commercial Real Estate (CRE) deal growth after two years of declines. Federal Reserve rate reductions and a "developer in chief" as president-elect helped bolster December transactions to their highest for that month in three years.

This activity may have energized price discovery and sector differentiation. December prices ticked down after four months of gains. Cap rates for Office and Retail rose slightly since Q3, while high quality Multifamily assets experienced compression, CoStar data showed. Distress deals were insignificant, although delinquencies crept up for all but Industrial in Q4.

Uncertainty has tempered transaction activity so far this quarter, fueled by a jump in treasury yields¹, the legality and volume of executive orders from the White House, an unwelcomed blip in January inflation, fluctuating tariff policies and the market-altering aftermath of fires in Los Angeles. Despite a bumpy start to a new CRE cycle, Bisnow reports anticipated price discovery momentum and continued engagement by banks. The Mortgage Bankers Association expects 2025 originations to expand by 16%. “Given the strong pickup in origination activity at the end of 2024, it appears that at least some borrowers and lenders are ready to move.”

So far, declining deliveries have boosted the fundamentals in all major sectors, per CoStar. In Retail, 2024 net deliveries² were vastly below their 10-year average, holding vacancy² at 4.1% in January. JLL believes that the hits Industrial took to vacancy and rents from its surge in space are near the end. In Q4, Office saw vacancy² stabilize at 13.8%, the pace of downsizing decline and net absorption go positive for the first time in three years. However, there is a lot of transition left for the Office sector. The federal government’s aggressive return-to-work policy will lead to rightsizing in many markets. The pace of Multifamily deliveries² is expected to ease further in 2025. And with current mortgage rates at their highest in over six months, the rent vs. buy decision strongly favors renting. Consequently, Fannie Mae foresees rental growth doubling this year.

A DEEPER DIVE: HIGH QUALITY, LARGE MULTIFAMILY DEVELOPMENTS

According to CoStar, Multifamily transactions leapt almost 22% in 2024, making it investors’ target asset class for this year. Four- and five-star properties with 50 units or more are particularly in demand. The graph below shows which regions were ahead of the declining deliveries curve but had keen investor activity – making them worthy of attention early in 2025.

This is the case in the Southeast, particularly the central Florida and Atlanta markets, which experienced both a steep growth in sales and the sharpest drop in deliveries over 2024. FOMO (Fear Of Missing Out) might drive very energetic activity here. On the other hand, besides Chicago, many of the markets in the Midwest region had neither transaction momentum nor much change in inventory. Investors are expected to be selective and let price discovery play out in these markets. The Northeast, West, Southwest and Mid-Atlantic regions all either saw sizeable declines in inventory – or enjoyed the uplift in transactions over the year. These regions may enjoy healthy activity in Q1, but not at a frantic pace.

WHAT’S NEXT? 

Stay tuned for next month’s Economic Update Q1 2025 to see how the commercial real estate market finishes the first quarter of 2025 and where it could be headed next.

¹ Board of Governors of the Federal Reserve System (US), Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity, Quoted on an Investment Basis [DGS10], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DGS10, February 26, 2025.

² Copyright ^©2025 “January 2025 Commercial Real Estate Insights.” NATIONAL ASSOCIATION OF REALTORS^®. All rights reserved. Reprinted with permission. https://www.nar.realtor/commercial-real-estate-market-insights/january-2025-commercial-real-estate-market-insights

How Hybrid Work is Changing the Office Sector

By 2025, hybrid work is projected to be the dominant work model for many companies across the nation. With over one billion square feet of office space available for lease, and approximately 150 million square feet of leased space set to expire in 2025, CRE investors are faced with increased pressure to attract and retain tenants. In this blog, we’ll explore how this shift is altering the way tenants view office space and how CRE investors can adapt to meet the evolving demands of hybrid work models.

In August this year, ResumeBuilder.com conducted a survey of 764 companies that transitioned to a fully remote work model at the onset of the COVID-19 pandemic. According to the results, the companies’ return-to-office (RTO) plans presented the following:

• 64% have a policy that requires some or all employees to work from the office at least part-time.
• 23% plan to implement such a policy by the end of 2025.
• 7% plan to implement such a policy in 2026 or later.
• Roughly 6% of the companies do not have such a policy in place.
• 30% of the companies are requiring employees to return to the office full-time.
• A majority of the companies are operating with a hybrid work model.

As companies continue to prioritize employee satisfaction and wellness initiatives as key retention and recruitment strategies for top talent, hybrid work models have become a popular option in RTO policies, since they offer flexibility while also maintaining in-person collaboration. Some of the top companies leading the way in successful hybrid work models include Amazon, Google and Airbnb. For a list of the top 13 companies reported by OfficeSpace, along with details about how these companies executed their work plans, click here.

According to Cushman & Wakefield’s Office Fit Cost Guide, the cost of redesigning office space differs by location, mainly due to the varied cost of materials and labor. For instance, the average fit out price per square foot in Atlanta is $159; for Chicago, $173; for L.A., $178; for New York, $213; and for San Francisco, $223. For CRE investors and property managers to make informed investment and operating decisions, they’ll need to evaluate the needs of their tenants, focusing on occupancy rates, space utilization and tenant feedback. Keeping an eye on the cost of fit outs and current trends can help investors make knowledgeable decisions about their portfolios and investments.

Current Design Trends

Traditional office space is becoming increasingly obsolete. Fixed locations with designated desks and meeting rooms are transforming into hybrid models that allow employees to work from home while still having access to a physical office with a welcoming, well designed and technically optimized environment for collaboration and meetings when needed. Essential office designs for hybrid work models generally include, but are not limited to, the following:

• Hot-desking. Flexible workspace arrangements where employees don’t have assigned desks and use available space at any time. The space is utilized on a first-come, first-served basis, or by reservation.

• Task-zones. Activity-based work (ABW) zones that allow employees to be more productive in fulfilling a specific need or task. Some examples include collaboration zones for group work, brainstorming and discussions; quiet zones for focused and individual work; and private zones designated for personal breaks.

• Office pods. An office pod is a soundproofed and mobile room that can be used as a private space for employees. They come in a variety of sizes, from smaller phone-booth-like pods for individuals to larger ones that supplement traditional meeting rooms. A recent cost study found that utilizing office pods instead of building new meeting rooms can significantly lower costs, with estimates suggesting potential savings of over $30 billion between 2023 and 2030.

• Work cafés. Open café workspaces have steadily gained popularity over the past decade. Taking cues from coffee shops, these spaces offer coffee, teas and small lounge areas or tall tabletops for employees to work over a cup of coffee or connect with a colleague. According to research, these in-person social encounters can help promote teamwork, generate ideas and foster emotional connections that support employee wellbeing.

• Health and wellness spaces. Office space that is centered around health and wellness remains a popular trend. Enhanced indoor air quality and biophilic design that connects tenants to nature by incorporating plants, natural light and water elements are top design elements. Dedicated fitness areas, walking paths and wellness rooms designed to reduce stress and boost morale are also popular. These amenities help to promote a healthy lifestyle and improve cognitive performance.

• Eco-friendly practices. Tenants are increasingly prioritizing eco-friendly practices, like energy-efficient systems, sustainable materials and green certifications. This shift not only helps reduce environmental impact but also enhances property value. It can also help CRE investors and property managers realize cost savings through incentives and lower operating expenses.

• Technology integration. Secure digital infrastructure, cutting-edge video conferencing features, and dependable, fast internet are essential for hybrid work. Tenants in a hybrid work model are likely to be drawn to properties that have pre-wired, high-tech areas designed for high-quality audio and video conferencing, wireless screen sharing and the ability to utilize other collaborative tools.

The integration of smart technology and artificial intelligence (AI) in office space will continue to revolutionize the way people work. Smart technology, such as IoT devices like automated lighting and climate control systems, also creates more efficient and responsive environments. AI-driven tools enhance productivity by automating routine tasks and providing data-driven insights for better decision-making.

Conclusion

The Office sector is in a period of ongoing transition as hybrid work shifts to the new norm. Although there are unique challenges to navigate, CRE investors can still find ways to maximize existing portfolios and find new investment opportunities in certain corners of the market. Savvy CRE investors may wish to conduct market research, utilize a due diligence checklist and have a clear understanding of the shift in office trends before making any investment decisions.

At Old Republic Title, we remain committed to supporting CRE investors and property managers as they transition their office spaces from traditional to hybrid work models and realign their office portfolios. Our National Commercial Services team is here to provide customized commercial services whether your project is simple or complex. To learn more about our services and to connect with a team near you, visit oldrepublictitle.com/commercial/ncs/.