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20M Owners Could Lower Mortgage Payments with a Refi

Homeowners with a credit score of at least 720 and 20% equity in their property could save nearly $270 per month by taking advantage of today’s lower rates.

NEW YORK – Mortgage rates are hovering near three-year lows, and up to 20 million homeowners could see a 75-point drop in their current mortgage rate by refinancing, according to a recent analysis from Black Knight.

Homeowners with a credit score of at least 720 and 20% equity in their property could save nearly $270 per month by taking advantage of today’s lower rates.

“Millions of homeowners could save money by refinancing,” Holden Lewis, home expert for NerdWallet, told Forbes.com. “That includes most people who bought homes in 2018. Seriously, even if you bought your home last year, you could save money by refinancing right now.”

Homeowners are starting to respond to lower rates. Refinances hit their highest point since mid-2016 and have doubled since late July. In the last week alone, refis were up 37% over the previous week, according to the Mortgage Bankers Association.

The 30-year fixed-rate mortgage averaged 3.6% last week, according to Freddie Mac.

Source: “Refinances Double; 20 Million Homeowners Could See a Mortgage Rate Drop,” Forbes.com (Aug. 14, 2019)

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