Despite the ongoing record low interest rates, 80% of owners have not refinanced.
Record-low mortgage rates have led to a refinancing boom unlike any other in American history, but according to new Bankrate data, a surprising number of homeowners are missing out on the opportunity to save. More than a quarter of current owners (27 percent) don’t even know their current rate, putting themselves in a poor position to determine if it’s worth it to refinance. “Millions of homeowners could be missing out on tens of thousands of dollars in savings by not refinancing their home loans at this year’s record low rates,” says Greg McBride, Bankrate chief financial analyst. “Roughly 8 in 10 homeowners with a home loan have not refinanced and more than 1-in-4 doesn’t even know what rate they’re paying.”
The nationwide survey showed that 17 percent of borrowers say they have refinanced this year, an additional 27 percent have considered refinancing but haven’t done so, and 52 percent have not considered refinancing. This means that despite the ongoing record low interest rates, 80 percent of owners have not refinanced. To be sure, some of these homeowners aren’t eligible for refinancing or have other compelling reasons not to refinance, but for most it remains a viable option.
Source: Bankrate