ARE HOMEOWNERS LEAVING MONEY ON THE TABLE?

homeowners are leaving money on the table

We just ran across a very interesting piece on CNBC.com which, frankly, is quite surprising.

Apparently, homeowners are leaving billions on the table by not taking advantage of low mortgage rates. The story says that mortgage rates have been so low for so long that “it is hard to believe nearly everybody hasn’t refinanced to a lower rate yet.”

We wholeheartedly agree. More than five million borrowers could both qualify and benefit from a mortgage refinance, according to a new report from Black Knight Financial Services.

The report indicates that about 2.4 million borrowers could potentially save $200 or more on their monthly mortgage payments and an additional 1.9 million could save $100 to $20 per month. Add it up, and that’s $1.2 billion still on the table, according to Black Knight.

“If rates go up 50 basis points from where they are now, 2.1 million borrowers will fall out of the running; a 100-basis-point increase would eliminate another million, leaving only 2 million potential refinance candidates, the lowest population of refinance candidates in recent history,” said Ben Graboske, senior vice president at Black Knight Data & Analytics.

Hence, borrowers should act now and fast as mortgage rates are expected to rise through 2016. While mortgage rates do not necessarily follow the Federal Reserve’s moves to the “T,” they will indeed rise with an improving economy and job growth.

So, if you are thinking of refinancing, you may want to study your options sooner rather than later. As always, we’re here to guide and assist you, if needed.

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Founded in 2009 during one of the slowest real estate markets in the past half century, First International Title has grown from a handful of offices to 25 offices throughout the state, from Key West to Pensacola, including its company headquarters in Coral Springs. We provide closing services in English, Spanish, German and French. With a combined 1,000 years of experience, our staff has extensive experience closing residential, refinance, reverse mortgage, short sale, REO, deed-in-lieu and commercial transactions. We do not outsource or offshore any portion of our core title services. We employ our own searchers and examiners to ensure quick turn times and accuracy. At First International Title, we put our customers first.

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