Places People Refinance The Most – 2021 Study

2021 SmartAsset Study: Places People Refinance The Most

Many owners have been encouraged to refinance their homes after mortgage rates hit historic lows in 2020. And Mac Freddie Data shows that this caused mortgage refinancing activity to reach its second highest level since the 2003 peak. For comparison, there were about $ 2.6 trillion in inflation-adjusted refinances for the year 2020, against 3 900 billion dollars in 2003.

Although refinancing activity has peaked nationally, it has varied by location. In this study, SmartAsset looked at the metropolitan areas where people refinanced the most in 2020. We compared the number of approved refinancing applications to the number of homes with a mortgage. Specifically, we used data from the Consumer Financial Protection Bureau (CFPB) and the Census Bureau to rank nearly 400 metropolitan areas based on the percentage of homes refinanced. For more information on our data or how we put our results together, read our Data and Methodology section below.

Main conclusions

  • There is a wide range of refinancing activity in metropolitan areas. In 2020, more than one in five homes with a mortgage was refinanced in 37 metropolitan areas out of the 393 total areas in our study. Meanwhile, the number of approved refinancing applications divided by the number of homes with mortgages is less than 10% in 148 metropolitan areas. Between the metropolitan area where people refinance the most (Provo-Orem, Utah) and the metropolitan area where people refinance the least (Binghamton, New York), there is a difference of almost 27 percentage points.

  • Higher home values ​​can mean higher potential refinance savings. With six of the top 10 metropolitan areas where people refinance the most in California, the average value of homes in the top 10 places in our study is $ 584,890. That’s about 143% higher than the national median home value of $ 240,500. This tendency for expensive areas to see higher refinancing activity is perhaps not surprising, as interest accumulates more on more expensive homes.

  • There is not a lot of refinancing activity in upstate New York. Six of the 10 metropolitan areas where people refinance the least are located in upstate New York. They include Binghamton, Utica-Rome, Syracuse, Glen Falls, Ithaca, and Buffalo-Cheektowaga-Niagara Falls. In all six locations, less than 5% of mortgage homes were refinanced in 2020.

Image is a map from SmartAsset titled

The image is a map from SmartAsset titled “The 10 Best Places People Refinance The Most.”

1. Provo-Orem, UT

Almost one in three homeowners with a mortgage in Provo-Orem, Utah, refinanced their home in 2020. The total number of approved refinancing applications was around 26,900 and the total number of homes with a mortgage. was about 90,300.

2. Flagstaff, AZ

In 2020, nearly 4,300 refinancing applications were approved in the Metro Flagstaff area of ​​Arizona. This is an increase of approximately 239% compared to the number of refinancing requests approved in 2019 (1,263 according to CFPB data). Compared to the number of homes with mortgages in the region, the 2020 refinancing rate is 28.79%. This is the second highest in our study.

3. Saint-Georges, UT

The St. George metro area is located in southwestern Utah. In 2020, 27.73% of homeowners with a mortgage applied for and were approved to refinance their home. In total, the number of approved refinancing requests was 7,682, according to data provided by the CFPB.

4. San Diego-Carlsbad, California

Among the top 10 places where people refinance the most, Metro San Diego-Carlsbad, California has the highest total number of approved refinancing applications in 2020, with 118,043. a mortgage in the area (around 427,500), we found that almost 28% of homeowners took advantage of low mortgage rates last year.

5. San José-Sunnyvale-Santa Clara, California

About 27.5% of homes with mortgages in San Jose-Sunnyvale-Santa Clara, California were refinanced in 2020. According to Census Bureau and CFPB data, the total number of homes with an existing mortgage is 248. 465 and around 68,300 refinancing requests were approved last year. .

6. Anaheim-Santa Ana-Irvine, California

In the Anaheim-Santa Ana-Irvine metropolitan area of ​​California, the total number of refinancing applications approved in 2020 (110,596) is approximately 219% higher than the number approved in 2019 (34,695). Using the number of homes with a mortgage, we found that the percentage of homes refinanced is 26.98%, the sixth highest among the 393 metropolitan areas we considered.

7. Oakland-Hayward-Berkeley, California

As in the Anaheim-Santa Ana-Irvine metropolitan area, more than 110,000 refinancing applications were approved in Oakland-Hayward-Berkeley, California last year. Compared to the number of homes with mortgages, we found that 26.83% of Oakland-Hayward-Berkeley homeowners who pay off a refinanced mortgage in 2020.

8. Oxnard-Thousand Oaks-Ventura, California

Oxnard-Thousand Oaks-Ventura is the fifth of six California metro areas that rank in our top 10 places people refinance the most. CFPB data shows that in 2020, approximately 30,800 refinancing applications were approved in the Oxnard-Thousand Oaks-Ventura metropolitan area. Compared to the approximately 120,100 homes with mortgages in the region, this represents almost 26% of homeowners who choose to refinance.

9. San Luis Obispo-Paso Robles-Arroyo Grande, California

About 25% of homes with mortgages in San Luis Obispo-Paso Robles-Arroyo Grande, Calif. Were refinanced in 2020. The total number of refinancing applications approved in 2020 (10,116) is approximately 231.5 % higher than the number approved in 2019 (3,052).

10. Ocean City, New Jersey

Popular location of the second home, Ocean City, New Jersey completes our list of the top 10 places people refinance the most. CFPB data shows that more than 4,300 refinancing applications were approved in 2020. Compared to the approximately 17,400 homes with a mortgage in the region, this means that nearly one in four homeowners have decided to take advantage of the low rates. of interest last year.

The image is a table from SmartAsset titled “Where People Refinance The Most”.

The image is a table from SmartAsset titled “Where People Refinance The Most”.

Data and methodology

To find the places where people refinance the most, we looked at 393 metropolitan areas. For each area, we compared two metrics:

  • Number of approved refinancing requests. The data comes from the Consumer Financial Protection Bureau and relates to 2020.

  • Number of houses with a mortgage. The data comes from the Census Bureau’s one-year US community survey.

For each metropolitan area, we divided the number of approved refinancing applications by the number of homes with a mortgage. The result represents the percentage of homes refinanced. We ranked the places according to these percentages, from highest to lowest.

Of note, Freddie Mac reports that repeat refinancings – loans that were refinanced twice or more over a 12-month period – increased in 2020. Our study does not distinguish between regular and repeat refinancings. Thus, the total number of approved refinancing requests may include requests from the same borrowers.

Tips for saving money on your mortgage

  • See if refinancing is the right decision. It can be difficult to know for yourself that refinancing makes sense. If you would like help calculating your potential savings, check out our refinancing calculator. In addition, our complete guide to refinancing has many other helpful resources for homeowners considering a mortgage rate adjustment.

  • Consider making additional payments. Paying more than your mortgage charges can benefit you in a number of ways, including reducing the amount of interest you pay over time. If you want to make additional mortgage payments, here is how to do it.

  • Seek out trustworthy advice. No matter where you live, a financial advisor can help get your financial life in order. Finding a qualified financial advisor doesn’t have to be difficult. The free tool of SmartAsset connects you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is best for you. If you’re ready to find an advisor who can help you reach your financial goals, start now.

Questions about our study? Contact us at [email protected]

Photo credit: iStock.com/courtneyk

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