“What are you waiting for — a color you like?” This is something you might have whispered under your breath when sitting in your car at a stoplight while the car in front of you had not noticed the light had changed. Well, according to mortgage analytics company Black Knight, about 11.1 million borrowers never noticed mortgage rates went down significantly about a year ago. While they can fluctuate, they have stayed historically low for some time.
RealtorMag reports that these millions of homeowners are still in a position to save money by swapping their existing mortgage for a new one with better terms, possibly saving them hundreds of dollars per month. And borrowers who may have gotten a mortgage a year ago likely are among those who could benefit from refinancing.
“The best refinancing candidates tend to have a credit score in the mid-700s or higher and at least 20% equity in their home,” says RealtorMag. “Such borrowers could decrease their mortgage rate by at least three-quarters of a percentage point (0.75%), according to Black Knight.” It goes on to say that some homeowners may be able to get an even lower rate by getting a shorter loan term.
The Ascent, a Motley Fool publication reports, “Though refinance rates may not be quite as attractive as they were in late 2020 or early 2021, they’re still pretty competitive on a historic basis. It’s a good idea to think about whether refinancing makes sense for you because it could end up making your home a lot more affordable to pay off.”
Not sure if you’re a candidate? Reach out to us with questions.
RealtorMag | TBWS