Rates on home loans have fallen to new all-time lows so many times this year that it's almost getting routine. "Really? Again?" But for homeowners, new record lows mean there are more old loans out there that are worth refinancing at lower interest. Thanks to the latest new floor for rates, more than 16 million homeowners with financing are now good refi candidates and are missing out on hundreds of dollars in savings per month, according to a report released by the mortgage data firm Black Knight.
Rates on home loans have been falling steadily amid the financial turmoil touched off by the coronavirus, and they've now hit new record lows several times since early March. But the latest levels have expanded the field of potential refinancers like never before, Black Knight says. A record 16.3 million homeowners now have an incentive to refinance and could cut their payments by an average $283 a month. Up to 4.6 million could save at least $300 per month by refinancing, and 2.6 million could save $400 or more each month, the research says. Homeowners are considered good candidates for a refi if they can shave at least three-quarters of a point (0.75) off their current rate.