Why Refinance?
Refinance Benefits
While the drop in mortgage rates benefits home buyers, it’s good for homeowners, too! Specifically, homeowners who would snag lower monthly payments by refinancing into a mortgage with a lower interest rate. Every time rates fall, there’s an increase in the number of homeowners who could save money by refinancing.
Black Knight, a technology provider for the mortgage industry, estimates that 5.9 million homeowners could cut 0.75% or more from their mortgage interest rate by refinancing.
Does a lower mortgage interest rate automatically mean that you should refinance? No. You might benefit from a smaller rate decrease, or you might have to wait for a bigger rate drop.
Even if you bought your home recently, it’s worth checking whether you should refinance. Black Knight estimates that 953,000 homeowners who got mortgages in 2018 could save an average of $162 each month by refinancing.
