According to a new Bankrate survey, most Americans are missing out on lowering their monthly mortgage payments by not taking advantage of low interest rates and refinancing. The survey states that 74% of homeowners with a mortgage since before the pandemic have not refinanced.
Greg McBride, CFA, Bankrate's chief financial analyst, says that with current record-low rates, most Americans can save significant money. “Cutting the monthly mortgage payment by $150 or $250, possibly more, can create valuable breathing room in the household budget when so many other costs are rising,” says McBride.
The most-cited reasons respondents haven’t refinanced include not being able to save enough (32%), closing costs being too high (27%), too much paperwork (23%), a plan to move or pay off the loan (14%), and a credit score being too low (12%).
An easy way to see how much you could save each month by refinancing is to use a refinance calculator. Some borrowers could save thousands a year by refinancing and lowering their interest rate.
The survey also asked why homeowners want to tap into their home equity with a cash-out refinance. The most common responses (respondents could have more than one choice) were home repairs and renovations (60%), consolidating debt (40%), and keeping up with bills (19%).
If you would like to speak with one of the experts at NASB to see if a refinance is right for you, call us at 888-661-1982 or click here for more information.
