“You’re missing out on the lowest rating you’ve ever had.” 8 out of 10 homeowners did not refinance in the past year. The rates are still so low, so what’s holding them back?

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Mortgage refinancing rates are now extremely low (here you can compare the best refinancing rates to date), and experts say now is a great time for many of us to refinance to potentially save thousands. “Mortgage rates are at levels not seen before this time last year, so if you haven’t refinanced, you are missing out on the lowest mortgage rate ever,” said Bankrate chief financial analyst Greg McBride. … This is because rates are likely to only rise in the coming years, he adds. (Find here the best mortgage refinancing rates in your area.)

Despite low rates, 78% of homeowners refused to refinance last year, according to data released by Zillow in June. Some of them are, of course, right: unless you intend to save half to a percent on your rate, or plan to move soon, refinancing is usually not the right fit for you, experts say. But for others, the decision may cost them: Research found that about half of those who refinanced in the past year saved $ 300 or more per month. That’s what holds people back.

You don’t understand the process mortgage refinancing

Refinancing isn’t easy: it requires you to take a closer look at your rate. (find here the best mortgage refinancing rates in your area) as well as for filing a large number of documents such as payroll receipts, tax returns, asset and debt reports, and bank statements. So it’s no surprise that 29% of homeowners in the Zillow survey said they didn’t refinance because they didn’t understand the process. “Maybe a person has a comfort zone for financial decisions, and this is not one of them,” says a certified financial planner and financial therapist. Tara Unversagt financial partners of South Bay in Southern California.

However, if you are unsure of the intricacies of refinancing, this guide guides you through what you need to know. And Jonathan Lee, senior director of mortgage sales at Zillow Home Loans, says that overall, refinancing a mortgage should be faster and easier than getting the initial loan: “It really starts with the borrower taking the time to understand their own goals and needs, and then find a lender they feel comfortable with, ”says Lee.

You think the fees and refinancing costs are too high (and sometimes it is)

A Zillow poll found that 38% of respondents indicated that refinancing fees were too high. “Refinancing is not free and it will take a year or more to recoup the cost of refinancing. If you don’t plan to live at home for more than a couple of years, or you have a small loan balance, then the interest savings may not be enough to recoup it, but these are fairly isolated cases, ”says McBride. In addition, “being able to frequently include your expenses on a loan means you can significantly reduce your payment without incurring any out-of-pocket costs,” McBride says.

You are already shaken

“Our brain has limited bandwidth and we are already overwhelmed, we are not going to waste time on something as time-consuming as refinancing,” says a certified financial planner and financial therapist. Tara Unversagt financial partners of South Bay in Southern California. If this sounds right to you, but you scold yourself for missing out on savings, McBride offers another way to think about the problem: “If you knew you would have to devote 5 hours to one task over the next three.” weeks, but that it would save you $ 10,000 over the next few years, you would do that, wouldn’t you? “This is an opportunity that now exists with refinancing. (Find here the best mortgage refinancing rates in your area.)

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