Owning your own home can help your financial situation enormously, not least because of the mortgage tax deduction benefits and capital gains exclusion that you become eligible for.
But it seems not everyone is taking advantage of being a homeowner and could be missing out on as much as $400 a month!
A new report from Black Knight Financial Services found that nearly 4.5 million borrowers are eligible to refinance and could lock in huge savings on their monthly mortgage payments.
This is down to the falling mortgage rates and rising house prices, as supply struggles to meet demand, something which is showing no sign of let up anytime soon.
The report revealed that the average borrower would save $260 a month, but nearly 700,000 could save $400 or more per month.
“Our data doesn’t tell us about motivation,” says Ben Graboske, senior vice president of data and analytics at Black Knight Financial Services.
“It leaves us to surmise that the reason is apathy, lack of awareness, and education,” he added.
While some homeowners are being savvy and keeping on top of the fluctuations in interest rates, refinance applications are still 30% below year-ago levels.
To put it simply, millions of borrowers are currently making higher monthly payments than they have to – and no one wants to be doing that.
Even if you only qualify for the average saving that is equal to a whopping $3120 over the course of a year, definitely not something to be ignored.
Not everyone will be able to refinance though due to a variety of reasons, one being the fact that some homeowners owe more on their mortgage their home is currently worth.
The good news though on that front is that that is unlikely to be the case for long as house prices continue to rise.
Other owners may have a low credit score that is blocking them from taking advantage of lower rates.
If you’re one of the 4.5million borrowers who have not yet refinanced it doesn’t cost anything to ask the question but it could leave you dramatically better off every month.