A Federal Housing Finance Agency (FHFA) report released on Thursday determined housing refinancing efforts are on the rise.
The report revealed more than 362,934 refinancing transactions were completed in the third quarter of 2017, compared with 356,707 in the second quarter.
Officials said the third quarter figures also showed more than 6,913 loans were refinanced through the Home Affordable Refinance Program (HARP), bringing the total number of HARP refinances to 3,477,717 since the program’s inception in 2009.
The report referenced 118,705 borrowers could still benefit financially from a HARP refinance as of June 30, 2017. Borrowers must meet the basic HARP eligibility requirements, have a remaining balance of $50,000 or more on their mortgage, a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates. FHFA officials said the borrowers could save an average of $191 per month, or $2,290 per year, by refinancing their mortgage through HARP.
Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program, officials said, adding through the third quarter of 2017, 26 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which help build equity faster than traditional 30-year mortgages.