Your Funds: Truths about investors/savers hidden in survey results | Business News
Clearly, as long-term financial instruments, mortgages can be a “set it and forget it” thing, but seeing as how the mortgage represents the biggest expense in a majority of American households, the rate number should always be front and center, with an eye toward getting a better deal whenever one is available.
Even among the people who know their mortgage rate, there’s plenty of room for refinancing now and saving money, as the average homeowner said their rate was 4.57%. Bankrate.com said the median rate for respondents was 3.57%.
In short, the average homeowner is paying a rate well above what’s available now. A Bankrate example of the potential savings: the monthly payment on a 30-year loan for $300,000 at 4% is $1,432, which would be cut by $167 (more than $2,000 per year) by refinancing to a 3% loan.
That should be “enough” savings to at least warrant consideration of a refi, but it all starts with knowing that the…
