Millions of Homeowners Aren’t Refinancing, Despite Big Potential Savings. Here’s What’s Holding Them
Mike De Socio
October 22, 2021
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There are nearly 14 million homeowners in the U.S. right now who could save a significant amount of money by refinancing their mortgage. A majority of them, however, are passing on the opportunity due to hesitation about the process and whether it would be worthwhile.
Those concerns — about closing costs or the amount of paperwork involved — are valid, and may be true in some cases. “It is a very hard decision when it comes to investing in your mortgage and home,” says Zoey Cigar-Hodge, a mortgage expert at Better, a digital mortgage lender.
But seeing beyond these common objections could lead you to a significant savings opportunity, at a time when interest rates are low and home equity is rising quickly. If you’re on the fence about refinancing, one of the best ways to make the decision is to crunch the numbers yourself: how much you’ll save, how long it’ll take you to recoup the upfront costs, and whether the savings are worth the effort in your eyes.
“It’s good to just do the math and figure it out yourself. Every situation is different,” says Katie Bossler, Quality Assurance Specialist at GreenPath Financial Wellness, a national nonprofit financial counseling agency.