Black Knight says that, amid all of the aid and stimulus
provided to keep the economy rolling along during the pandemic, one aspect that
doesn’t get a lot of attention is refinancing
. Black Knight points out in its
current Mortgage Monitor that 14.3 million homeowners have refinanced
since the beginning of the pandemic, 600,000 of them in each of the past four
months. This puts the country on track for as many as 8.9 million refis this
year, on top of the record 9 million in 2020. Due to record low interest rates, nine
million of those refinances were of the rate/term variety, and homeowners who
completed them saved an aggregate of $1.3 billion a month on their mortgage
payments. Assuming these homeowners stay in their homes through the end of next
year, the aggregate savings will rise to nearly $35 billion with the potential
of saving nearly $16 billion per year
thereafter. Those savings go back into
the economy, permitting homeowners to buy cars, take vacations, or save for
retirement.

 

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