Low mortgage rates and rising home values are giving more homeowners the opportunity to save some money each month.
CNBC reports that around 4.5 million eligible borrowers have an incentive to refinance their mortgages, according to a new report from Black Knight Financial Services. A few months ago, less than 3 million borrowers had the same circumstances.
The average borrower can save $260 a month, and around 700,000 borrowers can save more than $400 a month.
While mortgage applications to refinance are up about 9 percent for the month, refinance applications are still 30 percent lower than one year ago. Many borrowers aren’t capitalizing on the chance to refinance.
While millions of borrowers have already refinanced at record-low rates, others have been sidelined by various issues. Some are still underwater on their home loans, owing more than the homes are currently worth. Others have had hits to their credit scores since the recession and may not qualify for the lowest rates available. … Those problems, however, are falling away, as home values rise quickly and borrowers rebuild their credit.