Key Highlights

  • Black Knight study indicates 43% of 30-year mortgage holders eligible for refinance that would lower their mortgage rates
  • If you/your client has credit rating of 720 and at least 20% home equity, could reduce mortgage rate by 0.75% at minimum

States with the largest populations have the most homeowners eligible for refinancing, according to a state-by-state explainer of refinancing done by

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According to Forbes, nearly 19M homeowners could save roughly $300/month through refinancing who haven’t already done so. Critical to unlocking ultra-low refinance rates is the borrower’s credit profile. Lenders are dialing in to borrowers with credit scores of at least 720.

One thing to consider PRIOR to you and/or your clients applying for a refinance is closing costs. Without them, homeowners would refinance every time interest rates fall. Currently, average closing costs are $5,000, according to Freddie Mac.

Know that on December 1, closing costs will get higher because in December, the Federal Housing Finance Agency (FHFA), will charge an “adverse market refinance fee” on all mortgage refinances sold to Fannie Mae and Freddie Mac, some 70% of all loans. This new refinance fee will cost 0.5% of the total loan amount that could bring up the total cost of refinancing to $6,750. (or more) assuming the price of a $350,000 mortgage refinance. Also know that if you and/or your clients intend to sell within a few years, the savings gleaned from the monthly refi-savings may or may not pay for the required closing costs. Inform your clients!

Bottom line is that refinancing growth has exploded as mortgage rates have plummeted more than three-quarters of a percentage point since March. Compared to the same time last year, refinance activity has spiked by a whopping 200%. On average, some 18.9M homeowners could save an average of $297/month when refi-eligible with a minimum 720 credit score and at least 20% in home equity.

Obviously, the states with the largest populations have the most eligible refinance homeowners but many states, such as Oregon (48% if homeowners are refi-eligible, according to ATTOM Data Solutions), have a disproportionate share of eligible refi-homeowners who could take advantage.

Here are the top 5 states where people can save the most:


State          # Eligible Borrowers              Potential Savings  

Hawaii               57,000                              $483/month

Washington DC    72,00                               $445/month

California           2.95M                                $405/month

New York            1.05M                                $399/month

New Jersey         603,000                             $354/month

The four states where people can save the least include Indiana and Nebraska at $197/month, Iowa at $202/month and Arkansas at $203/month.


Thanks to

Also read: Refinance Volume Gets Larger and Larger, Are Low Rates Driving Luxury Sales?, Record Low Mortgage Rates Beginning to Rise