Mortgage holders: Do you know your interest rate? According to a recent Bankrate.com report, just over a third of mortgage borrowers (35 percent) aren’t completely sure of the interest rate they’re paying. One in seven mortgage holders reported being “not too confident,” “not all confident” or simply have no idea what their interest rates are.
“Your mortgage 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 regarding how much he or she is paying,” says Holden Lewis, senior mortgage analyst at Bankrate.com. “Given how far mortgage rates have fallen, these people could be missing substantial opportunities to save money by refinancing.”
Mortgage rates are well below historical norms. The average fixed-rate 30-year mortgage is now 3.80%. It was well above six percent as recently as 2008, and in 2000, it was close to eight percent. Refinancing a $200,000 loan from 6% to 3.80% would save $267 per month; refinancing from 8% to 3.80% would save $536 per month.
Analysts expect mortgage rates to rise in the coming months.
Published with permission from RISMedia.