Jan 13

5M Buyers Could Save Big

5M Buyers Could Save Big

5M Buyers Could Save Big

5M Buyers Could Save Big

Mortgage rates have been near record lows for years, but still more than 5 million borrowers who could qualify and benefit from refinancing have not taken advantage, shows a new report from Black Knight Financial Services.

Mortgage rates have recently fallen back below 4 percent. That means about 2.4 million borrowers stand to save $200 or more on their monthly mortgage payments. An additional 1.9 borrowers could save $100 to $200 per month.

“If rates go up 50 basis points from where they are now, 2.1 million borrowers will fall out of the running; a 100-basis-point increase would eliminate another million, leaving only 2 million potential refinance candidates, the lowest population of refinance candidates in recent history,” says Ben Graboske, senior vice president at Black Knight Data & Analytics.

As such, borrowers who want to see savings better act soon. Mortgage rates are largely expected to rise this year.

While rising home prices have given more home owners equity in the last year, home owners who haven’t seen prices rise as much can take advantage of a government refinance program called HARP. The program is geared for those who have loans backed by Fannie Mae, Freddie Mac, and FHA and who still owe more on their mortgage than their home is currently worth. Black Knight estimates that about 430,000 borrowers could still benefit from HARP.

With rising home values, Black Knight also predicts a rise in home owners taking out of home equity lines of credit, or HELOC. The popularity of HELOCs increased in 2015, up 35 percent year-over-year. About 37 million borrowers are estimated to be able to pull out an average $112,000 before hitting the amount of equity most banks require them to keep in the home.

California is the state that has the most borrowers eligible for a refinance or HELOC, according to Black Knight. Meanwhile, Texas and Florida are next with the most home equity that can be tapped.

Source: “Why Home Owners Are Leaving Billions on the Table,” CNBC (Jan. 11, 2016)

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.