Fall 2019 Mortgage Update
IF YOUR MORTGAGE WAS ORIGINATED IN 2018, THEN IT MIGHT BE TIME TO CONSIDER A REFINANCE.
According to new data, 80% of mortgages from last year carry an interest rate at least 0.75% higher than today’s prevailing rate (3.49%, according to Freddie Mac).
But 2018-borrowers aren’t the only homeowners who could benefit from today’s low-rate environment. Data from property analytics firm Black Knight shows that pre-2004 mortgagees could also save big. Nearly all of this cohort could shave 1.75% off their interest rate or more with a refinance.
In total, Black Knight says more than half of American homeowners with a mortgage have a rate at least 75 basis points higher than the current average. And 11.7 million of them? They have the credit score and loan-to-value ratios needed to refinance. It’s the largest share of potential refinancers since 2000 (when Black Knight first began tracking the metric).
For homeowners looking to tap home equity instead of just improve their rate, the news is also good. Total tappable home equity hit a record-high last quarter, clocking in a $6.3 trillion. The average homeowner has $140,000 in equity available to them via a cash-out refinance or other home equity product.
According to Black Knight, 76% of homeowners with tappable equity could access it “with little change to their existing 30-year-rate or perhaps even a slight improvement.”
If you are interested in saving money, contact Lendplicity at 855-877-5363 or get a quote at Lendplicity.com/Quote.