Interest rates in recent weeks have pushed the number of “high-quality” mortgage refinance candidates to 19.4 million, according to a CNBC report citing data provider Black Knight. With such a high volume of borrowers positioned to save money – an average of $309 per month according to the article – homeowners may wonder: could I save?
Homeowners well-positioned to save are, “defined as 30-year mortgage holders who have at least 20 percent equity in their home and credit score of 720 or higher, who could shave .75 percent off their current first lien rate by refinancing,” Black Knight reports. In aggregate $5.98 billion could be saved by borrowers meeting those criteria, the most in history.
To figure out if refinancing is worth it to you, you have several options. Of course, you can contact an Apex Mortgage Banker to have them crunch the numbers. If you prefer to do it yourself, however, start by determining your break-even point and defining your objective for refinancing. A break-even point is simply when you will recoup the cost of your new-and-improved loan. Common objectives for refinancing include lowering your interest rate, cashing out on equity, consolidating debt, or converting your loan from an adjustable to a fixed rate.
Eager to determine if you could save? Read our Refinancing Recommendations blog series to learn how to determine your break-even point and which goals you can achieve by refinancing.