Nearly 5 million homeowners in the US can now save on mortgages

The sharp fall in interest rates on loans last week unexpectedly gave millions of borrowers the right to refinance their mortgage loans.

Фото: Depositphotos

Considering that the average rate on 30-year fixed loans is now close to 4 percent, 4,9 million borrowers can qualify for refinancing, which will help reduce their interest rates by at least three-quarters of a percentage point, Black Knight concluded.

“While this will certainly impact housing purchasing power and demand, it will also have a huge impact on refinancing incentives,” Black Knight researchers said in a monthly report. “After refinance volumes fell significantly at the end of 2018, it will be a game-changer for both the housing and refinance markets if rates remain at these levels for an extended period of time.”

On a $300 mortgage, refinancing from 000 percent to 4,81 percent would save the homeowner about $4,06 per month. With a $133 loan, your savings would be double that at $600 per month.

The sharp decline in interest rates has definitely attracted the attention of consumers, especially since it was the biggest decline in one week in the last ten years. In November last year, the figure was just over 5 percent.

“Our call volume has definitely increased,” said Matt Weaver, a loan officer at Cross Country Mortgage in Boca Raton, Florida.

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