Texas Included InStates Where Refinancing Could Save The Most Money

Dated: April 15 2016

Views: 184


Interest rates have been at all-time lows for years, but millions of people who could qualify for reduced mortgage rates through refinancing haven’t taken the plunge. About 6.68 million homeowners across America could collectively save a total of $20 billion annually. California is the state with the most potential refinance savings, according to a state-by-state analysis provided to NerdWallet by Black Knight Financial Services.


The data, based upon a broader analysis released Monday in the company’s January Mortgage Monitor report, calculated the number of potential refinance candidates and their possible savings. Black Knight defined candidates for refinance as those with a credit score of at least 720 who had at least 20% home equity and a 30-year fixed mortgage rate at least 75 basis points, or 0.75%, above the Feb. 18 average 30-year fixed rate of 3.65%.


Other top states for savings include Florida, New York and Texas, where residents miss out on a total of at least $100 million in savings a month by not refinancing. California had the highest total potential savings at just under $300 million a month and the fourth-highest individual savings at $328 per homeowner per month.


Smaller states see higher averages
Higher total savings were found mostly in states with larger populations. Smaller states such as Connecticut, Hawaii and Massachusetts, as well as Washington, D.C., all made the top 10 for average potential savings per homeowner, with Hawaii topping the list at $437. This likely stems from higher real estate prices. States that placed in the top 10 in both total and individual savings were California, New Jersey, New York and Virginia.


Most states maintained roughly the same amount of individual potential savings from three months ago, although D.C., Montana and New York saw such savings rise by at least $20 a month. Iowa remained the state with lowest potential individual savings, at $171 a month.


» COMPARE: NerdWallet’s Mortgage Rate Tool for Refinance


Total savings were calculated by multiplying the potential refinance candidates in a state by the average potential savings. All figures are monthly.

States where refinancing could save the most money: full data


State Refinance Targets Average Individual Monthly Savings Total Statewide Potential Savings
HI 22,548  $419  $9,450,476 
DC 13,455  $334  $4,499,636 
CA 670,809  $317  $212,841,001 
NY 310,337  $317  $98,358,774 
MA 76,082  $306  $23,298,002 
NJ 129,413  $296  $38,333,716 
MD 111,124  $284  $31,581,368 
CT 46,996  $283  $13,303,729 
RI 12,504  $264  $3,304,918 
VA 163,145  $263  $42,891,339 
AK 9,417  $255  $2,396,743 
NH 20,797  $252  $5,234,488 
DE 20,506  $249  $5,113,833 
WA 166,020  $247  $40,968,802 
IL 181,775  $228  $41,517,228 
CO 131,686  $228  $29,964,203 
VT 7,627  $227  $1,730,941 
OR 115,613  $227  $26,217,125 
ME 16,105  $224  $3,610,317 
UT 52,438  $223  $11,703,494 
GA 176,555  $217  $38,385,210 
MN 129,461  $216  $27,959,940 
WY 9,017  $215  $1,942,957 
FL 377,707  $212  $80,097,426 
NM 37,845  $212  $8,017,987 
PA 183,185  $209  $38,301,892 
NC 154,759  $204  $31,638,183 
NV 63,430  $202  $12,825,863 
SC 75,991  $202  $15,365,269 
TX 414,478  $199  $82,309,876 
MT 19,354  $197  $3,813,953 
LA 57,050  $196  $11,185,320 
AL 63,024  $196  $12,337,989 
TN 94,364  $195  $18,417,427 
MS 20,501  $193  $3,952,110 
ID 39,819  $192  $7,647,757 
WI 61,275  $191  $11,724,376 
WV 15,119  $190  $2,868,706 
MI 159,183  $187  $29,698,913 
AZ 150,129  $184  $27,660,669 
OH 165,383  $184  $30,445,005 
OK 48,284  $178  $8,573,634 
MO 91,021  $177  $16,137,314 
KY 56,454  $176  $9,925,391 
KS 37,911  $176  $6,654,196 
AR 35,511  $169  $6,012,556 
IN 97,877  $167  $16,380,596 
NE 25,637  $162  $4,161,373 
SD 10,678  $162  $1,731,030 
ND 6,489  $160  $1,039,062 
IA 38,606  $159  $6,125,788


This story originally appeared on NerdWallet by Kamran Rosen.

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