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There are 11.1 Million Refi Candidates, With $2.99B in Potential Savings
Monday, March 2, 2020
With Freddie Mac's average rate for 30-year
fixed-rate mortgages (FRM) hitting 3.45 percent late last week. Black Knight
estimates, in its current Mortgage Monitor, that there are now 11.1
million refinance candidates. These are homeowners who currently have a
qualifying 720 FICO score, a loan-to-value (LTV) ratio of 80 percent on their
existing mortgage, and a rate high enough that they could shave off at least 0.75
percent by refinancing. These homeowners could save an average of $268 per
month, freeing an aggregate of $2.99 billion per month if all were to refinance. Those who took out a mortgage in 2018
remain the largest contingent in the refinancing pool at 1.67 million, but there
are eight other vintages that have at least 500,000 potential refinance
candidates. Black Knight says its credit criteria is conservative by design. Including
those who might still refinance with more liberal underwriting, there are close
to 22 million homeowners with rates more than 75 basis points higher than those
prevailing at present.
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