Many people in Delaware paying more than they have to for their home mortgage, according to a report from Black Knight Financial Services. The report looked at data from May 2015 and found that 6.5 million mortgage borrowers could qualify for lower mortgage payments after refinancing or using other methods. Black Knight researchers looked specifically at borrower and mortgage data from 30-year fixed-rate loans to arrive at their conclusions.
The Black Knight report found that about 3 million of the homeowners who would qualify for refinancing could lower their mortgage payments by $200 or more per month. If everyone took advantage of these savings, mortgage holders in the United States could save a combined total of $20 billion a year. However, slight fluctuations in mortgage rates could result in people being unable to refinance, and the required payment of upfront costs may not make refinancing financially appropriate for those who are planning on selling their homes in the near future.
According to the report, traditional refinancing would create savings for the vast majority of homeowners. The report also demonstrated how about 450,000 homeowners could lower their interest rates by taking advantage of the federal government’s Home Affordable Refinance Program. HARP is a viable option for mortgage borrowers who do not qualify for regular refinancing because their homes have lost value. Credit history plays a big role in how much a mortgage borrower will be able to save by refinancing.
People who are having difficulty keeping up with their mortgage payments may want to speak with a lawyer about refinancing. Legal counsel could help homeowners to determine if they qualify for refinancing and decide if refinancing is a prudent long-term solution to their financial problems.