Even as mortgage interest rates increase, millions of homeowners could still benefit from refinancing, according to mortgage technology and data provider Black Knight.
The company stated that although the number of homeowners that could benefit from a refinance is falling, about 5.9 million "high-quality" candidates could see potential savings through the process.
It added that the current average 30-year fixed mortgage rate – 3.56%, according to data from Freddie Mac – has a drastic effect on those who may be refinance candidates.
If you are interested in seeing how much you could save through a home refinance, visit Credible to find your personalized rate without affecting your credit score.
Borrowers could save significantly from refinancing
Black Knight said that the 5.9 million figure is the lowest number of eligible refinance candidates since November 2019, when interest rates averaged 3.75%. It’s also down from 11 million homeowners in December 2021, and from a peak of 20 million in 2020.
However, those who are eligible could see significant savings. The company estimates that there is about $1.6 billion in potential monthly savings – about $275 per borrower. In fact, there are more than 1 million homeowners who could save at least $400 per month, and 661,000 who could save $500 or more with today’s interest rates.
If you are interested in saving money, refinance your mortgage to lower your monthly mortgage payment into lower refinance rates. Visit Credible to compare multiple mortgage lenders at once and see who has the best interest rate for your loan amount.
Number of borrowers who could benefit from refinancing could be higher
Black Knight defines refinance candidates as 30-year mortgage-holders with a maximum 80% loan-to-value ratio and credit scores of 720 or higher. These candidates can shave at least 0.75% off their current mortgage loan.
However, three are many mortgage products available for borrowers with lower down payments or lower credit scores. Removing those factors makes 10 million borrowers that would benefit from a refinance at today’s interest rate, the company says.
If you are interested in refinancing your mortgage and saving on your monthly payments, contact Credible to speak to a home loan expert and get all of your questions answered.
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