4 Signs That You’re Ready To Buy (Or Refinance) A House In 2025

You invest in yourself on a daily basis, whether that be your regular workouts, productive therapy sessions, or special nights out at the theater. But investing in your future — venturing into homeownership or refinancing your treasured, hard-won abode — can feel a little out of reach, if not downright intimidating. “I always say, ‘homeownership is for everyone,’" says Ashley F. Moore, community lending manager at Chase, and proud Texas-based homeowner. "And you can start your journey today."

While there’s no crystal ball to signal when you’re ready to take that big step, there are some telltale signs that can point you in the right direction. First, in September, the Federal Reserve lowered interest rates for the first time in four years, with more cuts expected into 2025. The Mortgage Banking Association (MBA) even predicts lowered rates to remain steady into 2026. So, tldr: 2025 could be the year to start your home buying journey, because borrowing money — a mortgage — is essentially the cheapest it’s been in the past four years. For prospective homeowners, that could mean lower monthly loan repayments, and the opportunity to lock in the low rates for the lifetime of a long-term, fixed rate loan. For current homeowners, refinancing — swapping out your existing loan for a more beneficial one — means lowering monthly payments, increasing savings, and maybe even paying off your mortgage faster at the reduced interest rate.

“We've had an uptick in home buying demand, and we've also seen an increase in people refinancing their existing loan,” says Moore, who has over 12 years of experience partnering with clients to afford their dream homes. “So, we really have seen individuals say, ‘Hey, wait. Let's let my money work for me.'”

So, are you ready for homeownership? We partnered with Chase to outline and identify four main signs to help you determine if you're ready to take the next step.

Congratulations, you have significant savings, a steady income, low debt-to-income ratio, and a strong credit score. You also have strong budgeting and savings strategies, and an ongoing inventory of long- and short-term goals, with associated costs and expenses.

So, you’re ready to set aside a down payment, which most home buyers think should be 20% of the purchase price of the home. “But, that's not always the case,” says Moore. “We have programs as low as 3% down that can help make the upfront costs to buying a home more attainable.” Chase's online mortgage hub directly links to easy-to-digest details and resources for financial assistance on home purchases with minimum 3% down payments*, like Federal Housing Administration (FHA)* and Veterans Affairs Loans (VA)*. The Chase Homebuyer Grant*, eligible in 15,000 communities nationwide for primary residences, offers up to $7,500 that can be used toward big-ticket items like a down payment and closing costs. (Warning: Have some tissues ready before watching the videos of elated grant recipients and first-time homeowners, P. Scott and Chantal, at the bottom of the page.)

Being financially sound also means you can cover additional homeowner expenses, like closing costs, and state specific ones, such as buyer-to-seller option period fees, appraisals, and inspection expenses for new home buyers. “Are you ready to mow the lawn every single week, or would you be able to pay someone for that?” says Moore, emphasizing regular expenses, like Homeowners Association (HOA) dues or condo fees, doorman services, monthly maintenance, and parking. 

Moore also points out that the best time of year to buy really depends on you and your needs. There may be more inventory in the spring and summer, but then that would mean a more competitive landscape. In the winter months, properties may sit on the market longer, so there could be more room for negotiation. “There really is an advantage year-round,” says Moore. “That's why we say, ‘The best time to buy is when you're financially ready.’”

“What can you actually afford?” asks Moore. Within your ongoing budgeting exercises, you’ve also calculated your buying power — the amount of available cash, credit, assets (liquid or otherwise), and borrowing capacity for both the short and long-term. But you also need to be aware of what you’re willing to spend based on existing limitations and lifestyle line items. 

“Do you like to travel? Do you like to go shopping? What about healthcare?” says Moore. Additional goals and factors to consider include daycare, property maintenance costs, and car payments. Are you planning on making a big investment soon, like college tuition, a wedding, or a milestone vacation? The Chase affordability calculator* helps determine buying power, based on income, preferred monthly loan payments — which can be estimated with the handy mortgage calculator — and additional variables and goals tailored to you.

Maybe it makes sense to switch from an "adjustable rate mortgage"* (or "ARM" in real estate parlance) — which adjusts from a set interest rate to a market-dictated one after an initial five to 10 year period — to a stable 30-year fixed rate. The latter offers lower monthly payments, but higher interest paid over the life of the loan. 

Homeowners who’ve amassed a decent amount of equity over the past few higher interest rate years could now tap into it — referred to as “cash-out refinancing” — for debt consolidation* or much-anticipated home improvements*. “When rates drop, homeowners can tap into their home's equity through a cash-out refinance, which would allow them to liquidate funds to meet a financial goal or need," says Moore. “You're paying yourself back. This could be a retirement strategy, consolidating high interest debt like credit cards, or an opportunity for you to open a business.” There's also the option to switch out your current mortgage for a more attractive one, without touching your equity, aka rate-and-term refinance.*

“The biggest questions to ask are, ‘Does it make financial sense for me to refinance?’ And ‘Do I have a financial goal that I'm going to benefit from?’” says Moore. “It’s going to be very customer specific."

“I would say the biggest [challenge to home buying and refinancing] is lack of education,” says Moore. Of course, you can monitor the market through your go-to news sources and social media, which Moore notices many of her Millennial and Gen Z clients doing. But today’s often-unpredictable and ever-evolving economic cycles are a different ballgame than when our parents (or grandparents) purchased their homes decades ago.

So stay updated through Chase's newly expanded homeownership hub, Chase MyHome*, which offers a plethora of essential resources and more tools and calculators to help you find the most optimal loans and terms. Helpful guides also help filter down to preferred neighborhoods, inventory, and home values based on your lifestyle needs and preferences. “If you're looking to buy into a community, you want to understand — what's going on in the neighborhood? What are the schools like? Is it walkable, or do you want something more drivable?” continues Moore. “It's different for everybody.”

Beginner to Buyer, an award-winning two-season podcast, in English and Spanish, walks you through each step of the buying and refinancing processes, from assessing your readiness to number crunching to managing all the stress factors involved. Chase also works with community organizations across the country for in-person workshops offering face-to-face support from experts, and connections with fellow homeowners (and future ones). “Ultimately it's knowledge, knowledge, knowledge,” says Moore. “Make sure you get it from the right places and be honest with yourself about your financial goals."

Armed with up-to-date information, and a list of prepared questions to ask, find a Home Lending Advisor or your local mortgage professional, like Moore, who will support you through your buying and/or refinancing experience. Think of the quest like dating, seeking out a therapist or searching for a childcare provider. “Vibes, absolutely,” says Moore, who actively checks her DMs and regularly shares helpful, real-time resources on Instagram and LinkedIn. “Call me, message me, whatever. I'm happy to help."

In addition to your preferred schedule of communication with your lending manager, Chase client care specialists regularly provide loan application progress updates. Further, clients can access developments 24/7 via their Chase MyHome account. “There are so many different ways that you can stay abreast [of your] loan process.”

Chase also connects clients to settlement service providers during the home buying, owning, and refinancing process. For instance, Chase Agent Express* invites clients without a real estate agent to select an agent from its network of real estate agents. “You actually could earn up to a $5,000 reward post-close,” says Moore. “So not only are you working with a reputable agent who knows the community in your preferred market, but you may also be compensated for it. That's a win-win.”

Now you’re ready to decide if 2025 will be your exciting year of homeownership — whether you’re a first-time buyer, looking to upgrade, or refinance. “I personally think it's going to be a great year,” Moore says. “Because individuals are starting to see the benefit behind home buying, but also all the resources that are right there at their fingertips.”

*For informational/educational purposes only: Views and strategies described in this article or provided via links may not be appropriate for everyone and are not intended as specific advice/recommendation for any business. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. The material is not intended to provide legal, tax, or financial advice or to indicate the availability or suitability of any JPMorgan Chase Bank, N.A. product or service. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. JPMorgan Chase & Co. and its affiliates are not responsible for, and do not provide or endorse third party products, services, or other content.