A Recent Study Shows 11-Million Borrowers Could Benefit From RefinancingReturn to Blog
The number of mortgage refinancing applications is dropping as mortgage rates have been rising in recent weeks. That may scare off some homeowners who could still greatly benefit from refinancing to lock in lower interest rates.
About 11.1 million borrowers are still in a position to save money by swapping their existing mortgage for a new one with better terms, according to Black Knight, a mortgage analytics company. These potential refinance candidates could save an average of about $277 per month. Further, more than 2 million homeowners could save at least $400 per month, and 1.2 million could save an average of $745 per month, according to Black Knight’s estimates. Borrowers who may have gotten a mortgage a year ago likely are among those who could benefit from refinancing.
The best refinancing candidates tend to have a credit score in the mid-700s or higher and at least 20% equity in their home. According to Black Knight, those borrowers may decrease their mortgage rate by at least three-quarters of a percentage point (0.75%). Some homeowners may be able to get an even lower rate by agreeing to a shorter loan term. For example, as of Sunday, the average 15-year refinance rate was 2.69%, while the average refinance rate for a 30-year fixed-rate mortgage was 3.4%. Also, borrowers will want to factor in the closing costs to refinance — this can range from 2% to 6% of the loan amount.
If you have any questions regarding your current mortgage rates and would like assistance in refinancing, please refer to our Preferred Vendors page and contact any of our Lender Partners: M.J. Viglizzo, James W. Argo, or Andrei Paduraru! And for all of your property buying, selling, or management needs, contact Darryl Glass today at (510) 500-7531!