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States Where Refinancing Could Save the Most Money

The Huffington Post The Huffington Post 11/03/2016 NerdWallet

by Kamran Rosen
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.
ยป 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

StateRefinance TargetsAverage Individual Monthly SavingsTotal 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


Kamran Rosen is a data analyst at NerdWallet, a personal finance website. Email: kamran@nerdwallet.com.
This story originally appeared on NerdWallet.

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