Millions of homeowners could reap benefits of a refinance

Millions of homeowners could reap benefits of a refinance

Millions of homeowners could reap benefits of a refinance
Mortgage rates remain near all-time lows. This can translate to big savings for homeowners who take advantage of these low rates by refinancing an existing mortgage. Despite this, many homeowners have yet to take advantage of these favorable borrowing conditions.

According to a survey of 1,000 borrowers conducted by Bankrate, 74 percent of those with pre-pandemic mortgages haven’t refinanced. The most common reasons borrowers claim they haven’t refinanced yet is because they perceive that the savings wouldn’t be worth it. But experts say that homeowners should really look in to it before coming to that conclusion.

“[They] may want to rethink that,” said Greg McBride of Bankrate. “Today’s rates are at levels unseen prior to last year. Cutting the monthly mortgage payment by $150 or $250 [monthly], possibly more, can create valuable breathing room in the household budget at a time when so many other costs are on the rise.”

Those looking to refinance will find conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.