These 20 Cities Are America's Mortgage Refinance Hot Spots
Rare bright spots amid the coronavirus economic calamity have been some of the lowest mortgage rates ever seen, which are offering U.S. homeowners major money-saving opportunities when they refinance.
Compared to early last year, when rates were much higher, people taking out 30-year mortgages in 2020 are saving about $60 a month for every $100,000 they borrow, says Tendayi Kapfidze, the chief economist at LendingTree.
Refinances have taken off, particularly in major cities scattered throughout the country.
We count down the cities with the biggest jumps in refinance applications, according to a LendingTree study, and we show what typical homeowners are saving. Our estimates are based on Kapfidze's calculation and on median home values from Zillow, which have been rounded.
20. Salt Lake City
Versus early last year, refinance loan applications in 2020 have been up 281% in Salt Lake City, Utah's scenic state capital in the shadow of the Wasatch Mountains.
Here's a sample of how refinancing into a lower mortgage rate can cut housing costs here:
Median home value: $415,000
Typical monthly savings from a 30-year mortgage refinance: $249
Typical annual savings: $2,988
19. Richmond, Virginia
Demand for refinances has grown 286% this year in Virginia's capital, Richmond. LendingTree says in the cities on this list, home prices tend to be rising quickly and average credit scores tend to be higher. If you haven't seen your credit score in a while, you can check it for free.
How Richmond refinancers are saving:
Median home value: $240,000
Typical monthly savings from a 30-year mortgage refinance: $144
Typical annual savings: $1,728
18. Milwaukee
Refinance requests have seen a 291% increase so far this year in Milwaukee, the Wisconsin city famous for its breweries and Brewers (that is, the Major League Baseball team).
A sample of how refinances are benefiting Milwaukee homeowners:
Median home value: $133,000
Typical monthly savings from a 30-year mortgage refinance: $79.80
Typical annual savings: $957.60
17. Phoenix
So far in 2020, refinance applications have increased 292% in Phoenix as more homeowners in this desert city evaluate whether it's the right time to refi and decide to go for it.
Here's why refinancing is so hot in Phoenix:
Median home value: $266,000
Typical monthly savings from a 30-year mortgage refinance: $159.60
Typical annual savings: $1,915.20
16. Denver
Largely thanks to some of the best mortgage rates in history, refinance demand is running 295% higher this year in Denver, which famous not only for its high elevation but also for its football Broncos, mountain views and often punishing winters.
This is an illustration of why refinances are soaring in the Mile High City:
Median home value: $458,000
Typical monthly savings from a 30-year mortgage refinance: $274.80
Typical annual savings: $3,297.60
15. Boston
Compared to the first months of 2019, refinance applications have been up 297% this year in Boston. Maybe the savings are helping some Bostonians get over their heartbreak over Tom Brady leaving.
Look how homeowners here are cutting their house payments through refis:
Median home value: $636,000
Typical monthly savings from a 30-year mortgage refinance: $381.60
Typical annual savings: $4,579.20
14. New York
Demand for refi loans is up 302% this year in New York, meaning lenders have been receiving more than four times as many refinance applications as they were during the opening months of 2019.
Why refinancing has seen a big increase in the Big Apple:
Median home value: $654,000
Typical monthly savings from a 30-year mortgage refinance: $392.40
Typical annual savings: $4,708.80
13. Houston
Mortgage refinance applications have skyrocketed 308% in 2020 in Houston, which is the home of NASA Mission Control.
Here's a sample of the high-flying refi savings in what's nicknamed the Space City:
Median home value: $191,000
Typical monthly savings from a 30-year mortgage refinance: $114.60
Typical annual savings: $1,375.20
12. Indianapolis
Versus early 2019, refinances have revved up 309% in Indianapolis, the Indiana capital city known for auto racing's annual Indy 500.
Check out why refis have shifted into a much higher gear here:
Median home value: $151,000
Typical monthly savings from a 30-year mortgage refinance: $90.60
Typical annual savings: $1,087.20
11. Portland, Oregon
In this famously eclectic city in the Pacific Northwest, refinance applications have surged 320% in 2020 as Portland's hipster homeowners have made it trendy to take advantage of today's bargain-bin mortgage rates.
This is how Portlanders are slashing their housing costs by refinancing:
Median home value: $462,000
Typical monthly savings from a 30-year mortgage refinance: $277.20
Typical annual savings: $3,326.40
10. Los Angeles
Demand for refi loans is up 345% this year in Los Angeles as refinancing has become a blockbuster for homeowners in Hollywood and throughout the region. Call it "Honey, I Shrunk the Mortgage Payment."
Why refinancing is getting rave reviews in L.A.:
Median home selling price: $759,000
Typical monthly savings from a 30-year mortgage refinance: $455.40
Typical annual savings: $5,464.80
(A median home value was not available for Los Angeles, so we substituted the median home sale price, according to Zillow.)
9. Minneapolis
Refinance applications have seen impressive 348% growth this year in Minneapolis. LendingTree says households that improve their "balance sheets" through refinances should help the cities on this list rebound more robustly than others, once the coronavirus crisis ends.
Sample savings in Minneapolis:
Median home value: $289,000
Typical monthly savings from a 30-year mortgage refinance: $173.40
Typical annual savings: $2,080.80
8. San Diego
So far in 2020, requests for refi loans are up 360% in San Diego as homeowners in this city known for its perfect weather decide the climate is right for a refinance.
Why people in San Diego are warmly embracing refinance loans:
Median home value: $670,000
Typical monthly savings from a 30-year mortgage refinance: $402
Typical annual savings: $4,824
7. Charlotte, North Carolina
Applications for refinances have climbed 363% this year in Charlotte, home to banking companies, the NFL Carolina Panthers, the NBA Hornets and the NASCAR Hall of Fame.
This shows why homeowners have been racing to ref in Charlotte:
Median home value: $251,000
Typical monthly savings from a 30-year mortgage refinance: $150.60
Typical annual savings: $1,807.20
6. Washington, D.C.
The nation's capital also is a refinance capital, with refi loan applications up 366% this year. In this city where politicians famously disagree on everything, there's consensus that historically low mortgage rates are worth jumping on.
Why Washingtonians are electing to refinance:
Median home value: $638,000
Typical monthly savings from a 30-year mortgage refinance: 382.80
Typical annual savings: $4,593,60
5. Seattle
Refinance applications in 2020 are soaring 371% in Seattle, the city known for its towering Space Needle and nearby mountains.
Here's an example of why refinancing has gone sky-high in Seattle:
Median home value: $756,000
Typical monthly savings from a 30-year mortgage refinance: $453.60
Typical annual savings: $5,443.20
4. Austin, Texas
Demand for refinance loans has grown 386% in 2020 in Austin, the Texas capital city famous for its excellent Southwestern food and great live music.
How homeowners are cutting their housing costs in Austin:
Median home value: $397,000
Typical monthly savings from a 30-year mortgage refinance: $238.20
Typical annual savings: $2,858.40
3. San Jose, California
Refinancing is taking Silicon Valley by storm, as demand for refi loans has shot up 394% in San Jose compared to the levels in early 2019. And the savings can be huge, given how expensive the local real estate market is.
A sample:
Median home value: $1.05 million
Typical monthly savings from a 30-year mortgage refinance: $630
Typical annual savings: $7,560
2. Raleigh, North Carolina
In the top two cities, refinances are up by more than 400% — meaning lenders are receiving over five times as many applications as they were during the first months of 2019.
Refinance applications have surged 406% in Raleigh, North Carolina's capital city. Here's a look at the benefits:
Median home value: $288,000
Typical monthly savings from a 30-year mortgage refinance: $172.80
Typical annual savings: $2,073.60
1. San Francisco
The pricey City by the Bay has seen the fastest growth in refinances in 2020, with applications for refi loans up by a stunning 417%, according to the LendingTree study. Homeowners are enjoying massive savings, given that home values in San Francisco are as steep as the hills.
This is what we're talking about:
Median home value: $1.44 million
Typical monthly savings from a 30-year mortgage refinance: $864
Typical annual savings: $10,368
