Avenue Mortgage, LLC

NMLS #1115220

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Could You Save Money by Refinancing Right Now?

July 18, 2025 by Kay Monigold

Understanding the Real Benefits
The most common reason to refinance is to lower your monthly payment by getting a better interest rate. But refinancing can also help you pay off your loan faster, switch from an adjustable to a fixed rate, or tap into your home equity for important expenses. If your credit score has improved, or if your home has gained value, you may qualify for better loan terms now than when you originally purchased.

Lower Monthly Payments or Faster Payoff
Even a small drop in your interest rate can make a big difference over the life of your loan. For example, reducing your rate by half a percent could save thousands over the years. On the other hand, if your goal is to be mortgage-free sooner, you could refinance into a shorter term and build equity faster, sometimes with only a slight increase in your monthly payment.

Accessing Home Equity Wisely
Refinancing can also allow you to access the equity in your home through a cash-out refinance. This can be a smart option for major renovations, debt consolidation, or even funding education. However, it is important to treat home equity with care and work with a mortgage professional who can walk you through the pros and cons based on your long-term goals.

Is Now the Right Time for You
Refinancing is not one-size-fits-all. Your decision should depend on your current interest rate, how long you plan to stay in your home, closing costs, and your financial goals. Even with rates higher than they were a few years ago, refinancing may still offer financial advantages depending on your situation.

Let’s Run the Numbers Together
Before you decide, it helps to see the numbers clearly. I can review your current mortgage, compare options, and show you exactly what refinancing could mean for you. There is no pressure, just real information to help you make the best choice for your future.

Filed Under: Financial Reports Tagged With: Mortgage Tips, Refinance Reports, Save Money

The One Number More Important Than Your Credit Score for Mortgage Approval

July 17, 2025 by Kay Monigold

When it comes to getting approved for a mortgage, most people immediately think of their credit score. While it is definitely important, there is another number that can play an even bigger role in your approval, our debt-to-income ratio. Also known as DTI, this number gives lenders a clearer picture of your ability to manage monthly payments and overall debt.

What Is Debt-to-Income Ratio
Your debt-to-income ratio is the percentage of your monthly gross income that goes toward paying debts. This includes things like credit cards, car loans, student loans, and the projected mortgage payment. It does not include groceries, utilities, or other everyday expenses. Lenders use this number to assess whether you can realistically afford to take on a new mortgage without becoming overextended.

Why DTI Matters More Than You Think
You could have a great credit score, but if your debt-to-income ratio is too high, it could still disqualify you from getting approved. That is because lenders want to be sure that you can comfortably handle another monthly payment. A strong DTI shows that you are living within your means and that you are in control of your financial obligations.

What Is a Good Debt-to-Income Ratio
As a general rule, most lenders look for a DTI below 43 percent, but lower is always better. If your DTI is 36 percent or under, you are in a strong position. That said, different loan programs may allow for higher ratios based on other factors, such as credit score or savings. This is where working with a mortgage professional really helps—we can explore the loan options that best match your financial picture.

How to Improve Your DTI
Improving your DTI takes a combination of increasing income and reducing debt. If possible, pay down credit card balances, avoid taking on new loans, and look for ways to boost your monthly earnings. Even small adjustments can make a meaningful difference. If buying a home is your goal, give yourself time to improve your numbers and set yourself up for success.

Let’s Take a Look at Your Numbers Together
You do not have to guess where you stand. We can help you understand your debt-to-income ratio, review your credit profile, and give you a clear idea of what kind of mortgage you can qualify for. The more you know, the more confident you can feel moving forward.

Filed Under: Financial Reports Tagged With: Debt to Income, Home Financing, Mortgage Tips

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Our Team

Kay MonigoldKay Monigold
Owner/Mortgage Broker/Residential Mortgage Loan Originator
NMLS#1086176

Steven LoweSteven P Lowe, Sr
Residential Mortgage Loan Originator
NMLS #1085638

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Tyler, TX 75703
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