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Refinancing Your Rate
If you own a home, it may be a good time to think about possibly refinancing. According to new study data, possibly more than half a million homeowners could lower their mortgage by doing a refinance home loan.
Ready To Refinance
New data from Black Knight Financial Services, headquartered in Jacksonville, FL, reveals that an estimated 550,000 American homeowners could now see at least a 0.75% decrease in their mortgage rate by refinancing.
The surge is a result of recently declining rates, which began slipping at the end of December. Rates have now declined for six consecutive weeks, inching below 4.5% for the first time since early last year. The pool of refinance eligible population had previously fallen to a 10-year low in December.
Refi’s On The Rise
It looks like many homeowners have already started taking advantage of these lower rates. According to the Mortgage Bankers Association, refinance application volume was up 35% at the start of the year. Homeowners with larger loan sizes are showing the most interest in refinancing.
The drop in rates spurred a flurry of refinance activity (particularly for borrowers with larger loans) and pushed the average loan size on refinance applications to the highest in the survey at $339,800. The surge in refinance activity also brought the refinance index to its highest level since last July.
Overall refinances accounted for 45.8% of all mortgage applications last week — up from 42.7% the week prior. Last quarter, refinances made up just 36% of mortgage activity.
*This article does not represent legal interpretation or advice. This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. Seattle Mortgage Brokers, LLC NMLS: LO# 305371 MB# 761615