
Two Million Homeowners Squandered the Chance to Save by not Refinancing Their Homes!

The sages themselves have quipped that a stitch in time saves nine.
Indeed, these guys knew their stuff because financially, the act of procrastinating can cost you tons of money
Missing out on Refinancing
Currently, mortgage rates have skyrocketed by a full percentage point above what they were at the beginning of 2018.
Consequently, this has led to the number of borrowers that could have reaped the benefits of a refinance this year reduced by a whopping 56 percent. Indeed, info released by Black Knight, an analytics firm, has confirmed this to be the case.
Additionally, the said borrowers also failed to capitalize on getting the average monthly savings of about $252.00.
Interestingly, a few years back when interest rates were at a record low, millions of borrowers had taken advantage of the situation and had promptly refinanced their mortgages, constituting in billions of dollars being saved in aggregate.
Now, millions of borrowers did not take advantage of the current atmosphere, and are now unable to see the same savings manifesting. That being said, since rates hit rock bottom in 2016, roughly 5.9 million borrowers were poised to take advantage from refinancing, and not a single one of them applied one.
For this year, it was estimated that 2.2 million could have benefited from refinancing, and unfortunately, now, they no longer can.
To retrieve such numbers, the report conducted a survey counting individuals that had a high chance of qualifying for refinancing, having at least 20 percent equity on their homes, and possessing excellent FICO scores!

2 million homeowners have missed out on the chance of increasing their savings by failing to refinance their homes
$1 Billion down the Drain
According to Black Knight’s executive vice president in charge of the data and analytics firm, Mr. Ben Graboske, it is estimated that over $1 billion in aggregate savings was lost by these individuals because of not refinancing early enough. Currently, roughly 1.9 million borrowers have a high probability of applying for refinancing and qualifying for it.
That being said, it paints a grim picture primarily because this is the lowest number ever recorded since 2008. Additionally, mortgage refinances applications have been falling steadily and are currently 32 percent less than what they were a year ago.
This is as per information released by the Mortgage Bankers Association.

Interest rates on mortgages have now been increased by a full percentage point!
A Skepticism of the Mortgage Process
According to Maryland-based Apex Home Loans CEO Craig Strent, he believes that there will always be instances where some individuals have a bad history with the whole mortgage process and might be a little more reserved about trying it for the second time. Indeed, they may also be unaware technology has eased the friction during the mortgage process for the last couple of years.
That being said, if interest rates persist with their rising trend, of which it is anticipated that they will, a smaller number of borrowers will not benefit in terms of their savings from any refinance. Indeed, not only will there be a lesser interest to refinance, but also a lesser interest to relocate from one place to another. Moreover, a large number of borrowers today have initially refinanced or already purchased homes at a much lower rate.
So for them to relocate, they would then have to exchange their significantly low rate for a much higher one. Indeed, higher rates are also making it much more expensive to afford a home.

Not refinancing your home can cost you a lot in terms of savings
Making the Best out of Refinancing
For example, data released by Black Knight shows that the interest payment and monthly principle required to purchase an average home has increased by $190 per month since the commencement of 2018, constituting an 18 percent increase.
According to Graboske, it now requires roughly 23.6 percent of the American median income to meet the monthly payments required for the average-priced home. This has resulted in housing being at its most expensive for the last 10 years.
Despite being slightly better than the 25.1 percent experienced from 1995-2003, Graboske still believes that the housing market is just about to topple over.
Indeed, in the beginning of the year, only the State of Hawaii and California were less affordable as compared to their long term averages.
Now, over 10 States have become unaffordable.
That being said, as price appreciation plummets, the prices of houses are still rising in quite a number of markets.
Unfortunately for most consumers, the trend of high prices together with increased interest rales will reduce the affordability of housing markets.
More in Refinance
-
`
Nick Jonas and Priyanka Chopra Start a Chapter in $6.5 Million Luxury Villa
To be honest, 2018 was filled with bitter-sweet moments for Hollywood where many celebrities got engaged or married while others ended up in ugly...
February 14, 2019 -
`
L’Oreal Cosmetic Sales Rises on The Back of Strong Chinese Demand
Chinese Shoppers’ Demands The increased demand of Chinese consumers for luxury skin products, particularly creams contributed to L’Oreal’s success in outperforming...
February 13, 2019 -
`
Best Ways to Cut Down Credit Card Debt That You Must Know
The present economy means that a lot of people have maxed their credit card out, but the problem is that, even...
February 13, 2019 -
`
Justin Bieber Proves Family Comes First With a Surprise $850,000 Home
Some of the biggest names in Tinseltown know how their parents struggled to raise them. Many of these celebrities didn’t break through...
February 13, 2019 -
`
Check Out John Travolta’s Bizarre Home You May Not Want to Live In
Not every celebrity owns homes we would want to buy. In fact, some celebrities’ homes are so bizarre that you may not...
February 12, 2019 -
`
Inside Kris Jenner’s Secret Hidden Hills Home No One Has Ever Seen Before
Over the years, Momager Kris Jenner has watched her daughters become wealthy and influential. Thanks to Keeping Up with the Kardashians,...
February 12, 2019 -
`
Look Inside Bradley Cooper’s MASSIVE $13 Million New York Townhouse
Poor Bradley Cooper had to face embarrassment at the Oscars because his directorial debut in A Star is Born was snubbed by the...
February 11, 2019 -
`
Research Shows Women are Better Investors
A quick look at Wallstreet will have you convinced that men are better investors than women. The same applies when you...
February 11, 2019 -
`
Retirement Income Seekers Are Now Turning to Annuity Purchases. And This Is Why…
Individuals are finally buying annuities once more, and for a number of solid reasons. A couple of years ago, there was...
February 11, 2019
You must be logged in to post a comment Login