Refinance Pool Grows, but Not Among Sub-620 Credit Scores

The number of homeowners who could potentially benefit from
refinancing has increased by 3 million in the last year according to Black
Knight Financial Services’ April Mortgage
Interest rates have dropped back in recent month while home prices
have continued to rise, growing the pool of borrowers who appear to meet
broad-based eligibility criteria for refinancing substantially. 

Trey Barnes Black
Knight’s senior vice president of Loan Data Products, said, “Black Knight looked at the population
of borrowers whose current interest rates – as well as credit scores and
loan-to-value ratios – mark them as good candidates for refinancing.  In February 2014, there were approximately
4.1 million borrowers who could both benefit from and potentially qualify for
refinancing their mortgages. Through a combination of declining interest rates
and increased equity among borrowers driven by home price increases, an
additional three million borrowers now meet the same broad-based eligibility
criteria as compared to one year prior.” While the number had reached as high
as 7.4 million in September 2014, as of the end of February 2015, there were a
total of 7.1 million potential refinance candidates.

…(read more)

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