Why haven’t you refinanced yet?

Posted by Arjun Dhingra 

Most people know homeowners, or themselves are ones, who have refinanced at least two times in the last five years. As rates have continued to fall, opportunities to extract equity, pay off debt, or simply reduce their monthly payment have advertised their presence. Yet, there are nearly seven million homeowners that have not jumped at the opportunity to do any such thing. Why?

One of the reasons is the “psychology” of the homeowner dynamic. After hearing that the Fed raised key interest rates in early December of 2015, many people ASSUMED they had missed the boat and interest rates would start a prolonged and continued assent. But global economic shocks and geopolitical unrest in emerging markets caused rates to actually decrease. In a u-turn against prevailing wisdom, the eligible population of refinance candidates has swelled to a point where borrowers could be saving nearly $3,000 per year. This amounts to nearly $20 billion in relief/savings nationwide. This is money that could be used to pay down debt, put back into home improvements, or just spent in the general consumer economy.

Another part of the answer is that some homeowners are just sensitive or averse to the costs associated with a refinance. Of course, this is important to consider when weighing the option of moving forward with such a transaction. Will the savings make up for the costs and how long will it take for me to recoup, etc.? I am able to offer low cost and even no-cost options, so email me to learn more about how to take advantage for what could the best and last chance to refinance your home loan.