Home Refinances Continue To Drop

Millions of Qualifying Homeowners Are Missing Out On Low Interest Rates

Home Refinances Continue To Drop
March 2, 2016

While interest rates continue to decrease, the number of homeowners who have decided to take advantage of this and refinance their homes has actually decreased. With interest rates now hovering around 3.5 percent, many would have expected homeowners to jump at the chance to lower their monthly payment. However, a report from the Federal Housing Finance Agency (FHFA) shows that the number of homeowners who are applying for refinance has actually decreased by ten percent from the last quarter of 2015.

Black Knight Financial Services has pointed out that there are currently over seven million homeowners who qualify for refinancing, with over half a million eligible to save over $400 every month. That does not count the number of homeowners who qualify for the Home Affordable Refinance Program, the government program designed to combat the housing crash. Then there are many owners who can take advantage of either the VA or the FHA Streamline Refinance options. Overall, if all of these homeowners were to refinance, the combined savings would be over $2 billion dollars every month.

Those who have taken advantage of refinancing have saved a good amount of money each month – most saw a reduction of their monthly mortgage payment of at least $150. By taking advantage of zero-closing cost mortgages, there’s very little upfront money. Others who elect to do a debt consolidation can save more.

With guidelines continuing to loosen and interest rates below 4 percent, many experts are urging homeowners to refinance now before this window of opportunity closes.

Moneytips can help you refinance your existing home loan.

Photo ©iStockphoto.com/Petmal

  Conversation   |   11 Comments

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Steffanie | 03.03.16 @ 17:01
I know we took advantage of the decrease. Seems like others would too.
irene | 03.03.16 @ 17:02
I think some people are just afraid to refinance
Carla | 03.03.16 @ 17:02
We checked into refinancing but it wasn't going to make much difference than what we have now. I'm surprised more aren't trying.
Erin | 03.03.16 @ 17:02
We refinanced a couple of years ago, and it has definitely helped. I think some people may not want to refinance because it extends the original loan out by years, but that can be combated by paying extra each month. There are definitely pros and cons to refinancing.
gracie | 03.03.16 @ 17:02
I am surprised more people have not taken advantage of the savings this could offer them. Maybe we just don't pay close attention and people don't realize how much they could benefit?
Nancy | 03.03.16 @ 17:03
I think a lot of people are unable to refinance because of their credit histories after the housing fiasco from several years ago.
Brittany | 03.03.16 @ 17:06
The decline is probably in large a part because of the fear of taking out a refinance on a home.
Kailie | 03.03.16 @ 17:07
I can understand why there would be a decrease. It's not really something that I am surprised on.
trish | 03.03.16 @ 17:07
We would like to refinance but our interest rate is already low. Not sure we would get a better deal
Meredith L | 03.03.16 @ 17:09
I would love an opportunity to refinance but we've only got one income; we're recovering from a foreclosure, and don't qualify without a big down payment. So there you have it. Oh well!
Amanda | 03.03.16 @ 17:10
i think most are afraid to try much less do it. even though you may qualify doesn't mean it will matter much.
$commenter.renderDisplayableName() | 11.29.20 @ 18:53