Millions could save hundreds (per month) by getting a refi:
Bottom Line: If you look around your house, you're liable to find examples of ongoing financial waste. One of the most common ways we "set it and forget it" and waste money month is with our TV packages. Most people pay for far more than they ever use with at home entertainment. Additionally, Consumer Reports found a couple of years ago that the average household pays for at least one subscription monthly they never use. This is a reminder that simply reviewing what you subscribe and pay for without thought can potentially save you meaningful money monthly. But at least in the case of those examples, there's potential benefit for you. In this case of your mortgage - there isn't. It's just dead money - yet millions are wasting it needlessly monthly.
A common mistake many make when interest rates are rising, is to just assume that there aren't better options for a refi available. Take this year for example. Despite interest rates having been increased twice, some mortgage products are cheaper today than they were in January. Mortgages are more heavily influenced by longer term interest rates as compared with short-term moves. According to Black Knight Financial millions are missing out on opportunities to save hundreds monthly.
- 4.5 million would benefit by more than $100 per month by obtaining a refi right now
- Overall refis are down 30%+ from a year ago
- Average monthly savings by the 4.5 million would be $260 per month
I'd imagine that you'd prefer to not just set $260 per month on fire. Therefore, it's worth taking a look at current rates and what you're paying. Aside from rates potentially being low enough for you to save, if your credit quality has improved since you obtained your mortgage that could also be a positive catalyst for costs savings.