A recent study by the Journal of Financial Economics revealed American homeowners lost out on savings up to $5.4 billion in 2010 by failing to refinance their mortgage when interest rates decreased. So, have you ever considered refinancing? It may save you thousands.
You Could Miss Out on “Substantial Savings”
Jaren Pope, Economics professor and co-author, determined that 20% of homeowners could have benefited from refinancing and didn’t, missing out on “substantial savings”. According to the data, the median household would have saved $1,920 per year by refinancing.
A Simple and Conservative Approach to Refinancing
Refinancing your mortgage is a way to revitalize your mortgage loan for various reasons:
- Obtain a lower interest rate
- Shorten the term of your mortgage
- Convert your mortgage rate
- Utilize your home’s equity
- Consolidate debt.
By evaluating your current home loan and researching which options work best for you, you may be able to discover a true benefit to refinancing.
Pope recommends looking into a refinance any time you can get a better interest rate, “When you learn that interest rates have come down, a couple of phone calls or internet searches may help to determine if a refinance would help put extra money in your pocket.”
Don’t risk losing out on thousands of dollars. See if refinancing makes sense for you and how your home qualifies!
By Kaylee Fantis