6.5 million Homeowners with mortgages could save approximately $200-$500 on their monthly payments by refinancing, most could qualify and benefit from traditional refinancing while 450,000 are HARP-eligible. HARP, the Home Affordable Refinance Program, is a federal program established by the Federal Housing Finance Agency to assist underwater homeowners or those behind on their mortgage payments to refinance if unable to qualify for traditional refinancing.

Because refinancing is rate sensitive, an interest rate increase of just one-half a percentage point could eliminate one-third of those borrowers wishing to refinance. Additionally, a one-percentage jump could affect home affordability by increasing home prices by 13%. Presently, monthly mortgage payments on a median priced home is similar to that of what borrowers paid during the 2000-2003 period; down $400 from 2006 levels.

Source: “Black Knight’s May Mortgage Monitor: 6.5 Million Borrowers Could Save $1.66 Billion Monthly Via Refinancing” Black Knight Financial Services (July 6, 2015). “Making Home Affordable” Making Home Affordable.