Why aren’t more people refinancing their home loans?
SAN ANTONIO – Nathaneal Soto and Jogenia Gonzalez wanted to take advantage of very low mortgage rates, so they refinanced their loan for huge savings.
“Before, I paid 4.7%. Now it is down to 2.8%, ”Soto said. “We’re saving about $ 400. “
With mortgage rates still close to historic lows and the potential for significant monthly savings, why aren’t more homeowners doing it?
“Despite the prospect of saving thousands of dollars on their loan, many homeowners do not refinance their loans to take advantage of these historically low interest rates,” said Octavio Blanco of Consumer Reports. “We know this is especially true for minority owners.”
A recent study found that 6% of all re-fi requests came from black borrowers. Nine percent were from Latinos.
Refinancing often takes time and money. Banks need the same information you provided when you first approved. This means gathering proof of employment, tax returns, credit checks, and other financial documents. It may seem overwhelming and not worth it.
In addition, the pandemic, which has hit black and Latino communities harder than other groups, may also have hampered refinancing efforts.
Help is available to bridge the gap. A HUD approved housing counseling agency can help answer questions and help borrowers get started.
“They can help you put your documents in order, explain which refi options are best for you, help you calculate the costs and how long it will take to pay them off,” Blanco said.
Click here for a link to these agencies.
In San Antonio:
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