Here’s how much homeowners can save by refinancing today

Aly J. Yale
The Mortgage Reports contributor

Mortgage rate drop equals big savings for homeowners

Thanks to yet another drop in mortgage rates last week, homeowners could save big by refinancing. In fact, according to new data, a refinance could help more than 8 million borrowers shave at least 0.75 percent off their interest rate.

Verify your new rate (Oct 15th, 2019)

Reducing interest rates with a refinance

According to the Mortgage Monitor released today by Black Knight, last week’s drop in mortgage rates equals big savings for existing homeowners. A whopping 8.2 million borrowers could now reduce their interest rate by 0.75 percent with a refinance. It’s the highest number of refinance candidates the nation’s seen in more than three years.

In total, the average homeowner could save around $266 per month. Even a big chunk of recent mortgages could be eligible for these savings.

As Ben Graboske, president of data and analytics for Black Knight, explains, “All in all, some 8.2 million homeowners with mortgages could now both benefit from and likely qualify for a refinance, including more than 35 percent of those who took out their mortgages just last year.”

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Refinancing picks up

Homeowners have already begun to take advantage of the low rates which, according to Freddie Mac, averaged just 3.73 percent on 30-year, fixed-rate loans last week.

“Early estimates suggest closed refinances rose by more than 30 percent from April 2019, with May’s volumes estimated to be three times higher than the 10-year low seen in November 2018,” Graboske said.

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Data from the Mortgage Bankers Association shows that refinances made up more than 51 percent of all loan activity last week. Refinances were up 3 percent week over week.

Get today’s mortgage rates

Are you considering refinancing your current mortgage loan? Then shop around and see what rates you qualify for today.

Verify your new rate (Oct 15th, 2019)