Even with mortgage rates jumping since the start of the year, millions of American homeowners can still benefit from a refi. Mortgage data firm Black Knight estimates that roughly 6 million homeowners could save an average of $275 a month by swapping out mortgages.
That total counts homeowners defined by Black Knight as “high-quality refinance candidates.” Those are borrowers with credit scores of 720 or higher, who hold at least 20 percent equity in their homes, are current on their mortgage payments and who stand to shave at least 0.75 of a percentage point from their existing mortgages.
While 5.9 million homeowners may still be in a position to save an aggregate of $1.6 billion each month, Black Knight’s report acknowledges that it’s a significantly smaller pool of good refi candidates, which was near 20 million in 2020.
