Advertiser Disclosure

States Where Refinancing Could Save the Most Money

Managing Your Mortgage, Mortgages
You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here's how we make money.
states-gain-most-refinancing-story

Interest rates have been at all-time lows for years, but millions of people who could qualify for reduced mortgage rates through refinancing haven’t taken the plunge. About 6.68 million homeowners across America could collectively save a total of $20 billion annually. California is the state with the most potential refinance savings, according to a state-by-state analysis provided to NerdWallet by Black Knight Financial Services.

The data, based upon a broader analysis released Monday in the company’s January Mortgage Monitor report, calculated the number of potential refinance candidates and their possible savings. Black Knight defined candidates for refinance as those with a credit score of at least 720 who had at least 20% home equity and a 30-year fixed mortgage rate at least 75 basis points, or 0.75%, above the Feb. 18 average 30-year fixed rate of 3.65%.

Other top states for savings include Florida, New York and Texas, where residents miss out on a total of at least $100 million in savings a month by not refinancing. California had the highest total potential savings at just under $300 million a month and the fourth-highest individual savings at $328 per homeowner per month.

Smaller states see higher averages

Higher total savings were found mostly in states with larger populations. Smaller states such as Connecticut, Hawaii and Massachusetts, as well as Washington, D.C., all made the top 10 for average potential savings per homeowner, with Hawaii topping the list at $437. This likely stems from higher real estate prices. States that placed in the top 10 in both total and individual savings were California, New Jersey, New York and Virginia.

Most states maintained roughly the same amount of individual potential savings from three months ago, although D.C., Montana and New York saw such savings rise by at least $20 a month. Iowa remained the state with lowest potential individual savings, at $171 a month.

Total savings were calculated by multiplying the potential refinance candidates in a state by the average potential savings. All figures are monthly.

States where refinancing could save the most money: full data

Scroll down to see all states, as well as total U.S. numbers.

StateRefinance targetsAverage individual monthly savingsTotal statewide potential savings
California 912,500 $328 $299,386,635
New York 396,300 $341 $135,271,068
Texas 513,200 $212 $108,871,248
Florida 476,100 $222 $105,652,879
Virginia 213,000 $280 $59,563,874
Washington 219,300 $264 $57,837,532
Illinois 231,800 $241 $55,768,153
New Jersey 173,400 $312 $54,122,971
Pennsylvania 225,900 $225 $50,801,957
Georgia 220,700 $230 $50,673,723
North Carolina 204,400 $217 $44,386,886
Colorado 181,100 $239 $43,244,926
Maryland 143,400 $300 $43,026,081
Michigan 202,400 $195 $39,521,159
Ohio 201,600 $195 $39,333,588
Minnesota 171,000 $230 $39,330,772
Arizona 201,800 $193 $39,000,935
Oregon 154,000 $242 $37,236,278
Massachusetts 98,900 $321 $31,762,401
Tennessee 118,900 $209 $24,850,462
Indiana 120,200 $177 $21,330,499
South Carolina 97,300 $215 $20,948,300
Missouri 109,800 $188 $20,682,345
Connecticut 58,800 $301 $17,691,258
Nevada 82,900 $212 $17,581,731
Utah 70,700 $237 $16,756,285
Alabama 76,200 $212 $16,141,805
Wisconsin 76,900 $203 $15,634,645
Louisiana 69,600 $211 $14,705,840
Kentucky 72,100 $188 $13,563,039
Hawaii 28,100 $437 $12,278,783
Oklahoma 57,900 $191 $11,040,358
Idaho 51,500 $207 $10,647,790
New Mexico 46,200 $227 $10,470,225
Kansas 46,700 $188 $8,782,789
Iowa 48,700 $171 $8,345,409
Arkansas 43,800 $182 $7,984,692
Delaware 26,700 $263 $7,009,791
New Hampshire 26,100 $265 $6,913,984
District of Columbia 18,500 $356 $6,578,328
Nebraska 33,300 $173 $5,745,601
Montana 25,600 $217 $5,555,794
Mississippi 24,200 $208 $5,023,580
Maine 20,100 $238 $4,776,631
Rhode Island 15,800 $277 $4,373,090
West Virginia 18,400 $202 $3,720,710
Alaska 12,600 $267 $3,369,254
Wyoming 11,500 $232 $2,671,881
South Dakota 12,600 $181 $2,280,199
Vermont 9,400 $241 $2,263,283
North Dakota 9,000 $173 $1,557,989
U.S. 6,680,900 $249$1,666,069,437

Kamran Rosen is a data analyst at NerdWallet, a personal finance website. Email: kamran@nerdwallet.com.


Image via iStock.