A record 19.4 million homeowners can now save on mortgage refinancing

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The average interest rate on the popular 30-year fixed mortgage has hit a record low of 13 times this year. I did it again last week. It has given current homeowners the unprecedented potential to save their monthly payments through refinancing.

According to mortgage technology and data provider Black Knight, Freddie Mac’s latest 30-year fixed average of 2.72% has boosted the number of “high quality” mortgage refinancing candidates to 19.4 million. Did. This is the highest volume ever.

Black Knight defines a refinancing candidate as a 30-year mortgage holder with at least a 20% stake in a home, a credit score of 720 or higher, and refinancing can reduce the current lien rate by at least 0.75%. I will.

Refinancing can save an average of $ 309 per month for these borrowers, which also has the highest monthly savings potential in history, totaling $ 5.98 billion. That’s average, but given current interest rates, some borrowers can save even more.

Refinancing at today’s rates can save more than 4.5 million borrowers at least $ 400 a month and 2.7 million more than $ 500 a month.

“30-year interest rates are still at historically low levels, especially given the record high number of qualified candidates,” said Andy Walden, economist and market research director at Black Knight. Volume is expected to remain strong in the coming weeks. ” “Refinancing origins hit record highs in Q3, and Black Knight’s Compass Analytics and Optimal Blue integrated rate lock data suggests that volume could stay above record levels in Q4 as well. doing.”

Refinancing a mortgage is not always a fun experience as it involves tedious paperwork, but according to the Mortgage Bankers Association, 4.6 million borrowers have already refinanced by the third quarter of this year.

The number of potential refinancing candidates varies from state to state, given population and home prices. In high-cost states, borrowers have more loans and refinancing may save more each month.

California is a nationwide leader, with more than 3 million candidates saving an average of $ 420 a month and a total of $ 1.3 billion a month. This is followed by Florida (1.4 million), Texas (1.3 million) and New York (1.1 million).

By city, New York City’s metropolitan areas are the most conservative. Nearly 1.4 million high-quality refinancing candidates could save a total of $ 606 million per month by refinancing with an average monthly savings of $ 437 per homeowner. The metropolitan areas of Los Angeles, Chicago, and Washington, DC follow, with 960,000, 723,000, and 575,000 candidates, respectively.

Most borrowers are still refinancing directly, but record-high housing assets increase the likelihood of large-scale cash-out refinancing. House prices are skyrocketing due to rising demand for housing triggered by a pandemic. According to the S & P Case-Shiller National Home Price Index, prices in September rose 7% each year. The amount available to potential equity borrowers, although 20% remains at home, is now approaching record highs.

A record 19.4 million homeowners can now save on mortgage refinancing

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