With mortgage rates near their lowest point in years, millions of homeowners could benefit from refinancing their current mortgage. According to real estate analytics firm Black Knight, 8.2 million borrowers could lower their monthly mortgage payments by at least 75 basis points. That’s about $266 per month in savings.
Since mortgage rates began their steady decline last quarter, the volume of refinances has increased significantly. Mortgage applications to refinance a home loan were up 92 percent last week on a year-over-year basis.
In addition to locking in lower rates, refinance also provide the opportunity for borrowers to tap into their home’s equity. With rising home values, Black Knight has reported that the average homeowner has $136,000 in tappable equity.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.