FICO scores for refi borrowers reach six-year high, Ellie Mae says
The average credit score of borrowers who refinanced mortgages in July with loans backed by Fannie Mae and Freddie Mac rose to a six-year high, according to an Ellie Mae report. The score was 750, up from 742 in June.
Low mortgage rates are attracting more creditworthy borrowers who are looking to improve their household balance sheets by lowering their monthly bills. About 9.7 million mortgage borrowers are “refi eligible,” meaning there’s at least a 0.75% difference between the financing costs they currently have and mortgage rates now available, according to Black Knight. Those borrowers would save an average $267 a month on their mortgage bills, measuring just principal and interest, Black Knight said earlier this month.