Apr 3, 2019

Roughly 5 million homeowners can now save money on their mortgages when they refinance their existing higher-rate loans. Last week’s sharp drop in interest rates made millions of borrowers eligible to refinance their loans into more affordable lower payments.

The average rate on the 30yr fixed is now close to 4 percent which means that almost 5 million potentially eligible homeowners could reduce their interest rates by at least three-quarters of a percentage point (.75%), according to Black Knight, a mortgage data and analytics company.

"While this will certainly impact buying power and housing demand as we enter the spring homebuying season, it's also had a massive impact on refinance incentive almost overnight," Black Knight recently stated in their report.

On a $300,000 mortgage a refinance that saves a borrower .75% in interest rate would save the homeowner about $133 per month. On a $600,000 loan, it would be twice that savings, or $267 per month!