The Importance of Knowing Your Mortgage Interest Rate


Filed under: Mortgage Rates, Mortgage Refinancing


mortgage interest rateThere are many important facts that people know about their finances, and they can rattle off all kinds of numbers about how much they make, how much they have in their savings account, and how much their monthly bills are.

But according to a recent survey by Bankrate.com, 35% of homeowners did not know their mortgage interest rate. One in seven mortgage holders were either “not too confident” or had no idea about their rate.

Holden Lewis, a senior mortgage analyst at Bankrate.com commented, “Your mortgage rate is one of the most important numbers in your financial life, and there’s a good chance that one of your neighbors has no idea how much he or she is paying.”

Mortgage adviser Ed Conarchy added, “Although rates have hovered near the lows for so long, many homeowners with higher rates have not refinanced their mortgages. As highlighted by Bankrate’s survey, many homeowners simply are not aware of the interest rate on their loans and that’s one of the reasons they have ignored the current low-interest rates.”

Conarchy also said, “As consumers, once we get the mortgage, we sweep the rate under the rug and we don’t worry about it. So, we don’t look at rebalancing or refinancing opportunities.”

The survey suggested that 65% of homeowners are very confident they actually know their mortgage rates. But mortgage planner Jim Sahnger says that figure may even be too high compared with the reality of the percentage of homeowners who really know their rate.

Sahnger said that when he asks homeowners for their mortgage rate and late compares the number given with the actual rate on the documents, most don’t get it correct.

“They may have a general range, but they don’t know exactly,” added Sahnger.

It is important to be aware of current mortgage rates and your own because refinancing could lead to substantial savings.

Sahnger suggested, “If you are not going to get a big raise at work, why don’t you see if you can give yourself one at home?” He urges homeowners to see if they can save with a refinance.

Lenders are not surprised by Bankrate.com’s findings. Purchasing a home can be stressful, and most borrowers are honed in on what their monthly payment will be, not how they get to that payment.

Matt Weaver, senior mortgage loan originator for PMAC Lending Services explained that most borrowers know the general range with somewhere between a half and a quarter percentage point variance. That variance, however, can translate into meaningful savings.

Lewis concluded that borrowers should check the current rates, and if they’re not sure of their own rate, they should go check to make sure they’re not missing out on an opportunity for savings.

If you have any questions about refinancing and getting a lower mortgage loan rate, or if you want to know anything else about the mortgage business, please feel free to call me and we can discuss what is on your mind.

source: http://www.cnbc.com/id/102389180 from website www.cnbc.com

source: http://www.bankrate.com/finance/consumer-index/money-pulse-0215.aspx from website www.bankrate.com


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