With mortgage rates hitting all-time lows in recent months, 75% of homeowners—or 19.3 million—could refinance and lower their monthly mortgage payments, according to data from Black Knight, a software and analytics firm for the mortgage and lending industry. That is the largest number of potential refinance candidates on record, Black Knight says.
What’s more, the average homeowner could potentially reduce their mortgage payment by $299 a month by refinancing, according to the analysis. Nearly 2.5 million homeowners could save even more—at least $500 a month, the firm says.
Banks offer competitive rates for refinancing, and mortgage experts say it’s important to shop around to get the best rate and lowest closing costs. The Mortgage Reports has compiled a list of which lenders tend to offer the best refinancing rates. It tracked data on refinance loans from the largest lenders in 2019. The following lenders topped the list for offering the most competitive 30-year refinance rates, on average:
- Citizens Bank
- Navy Federal Credit Union
- USAA
- Veterans United
- Freedom Mortgage
- LoanDepot
- Bank of America
- Caliber Home Loans
- Quicken Loans
- Wells Fargo
Navy Federal Credit Union, USAA, and Veterans United are available only to eligible veterans, service members, and people affiliated with the military.
The lenders that tend to offer the lowest refinance closing costs, based on 2019 data, according to The Mortgage Reports, are:
- PNC: $1,018 (cost for a $250,000 refinance)
- Veterans United: $1,303
- USAA: $1,954
- Chase: $2,514
- Guaranteed Rate: $2,531
- Wells Fargo: $2,571
View the full list of lenders ranked from The Mortgage Reports’ analysis.
Source: “Who Has the Best Refinance Rates? Top 24 Lenders Ranked,” The Mortgage Reports (Sept. 28, 2020)
