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The average interest rate on the popular 30-year fixed mortgage has set a record low 13 times so far this year. It did it again last week. That has given current homeowners unprecedented potential to save on their monthly payments through a refinance.
With the latest record low of 2.72% on Freddie Mac’s weekly 30-year fixed average, the number of ‘high-quality’ mortgage refinance candidates jumped to 19.4 million, according to Black Knight, a mortgage technology and data provider. That is the highest volume on record.
Black Knight defines refinance candidates as 30-year mortgage holders with at least 20% equity in their homes and credit scores of 720 or higher, who could shave at least 0.75% off their current first lien rate by refinancing.
These borrowers can save an average of $309 per month by refinancing, for an aggregate $5.98 billion in potential monthly