One quarter of Americans don’t even know their mortgage rate

A third of young homeowners don’t know what rate they pay each month

National /
Feb.February 15, 2020 09:00 AM
Around 27 percent of homeowners who responded to a Bankrate study said they don’t know what the interest rate is on their home (Credit: iStock)

Around 27 percent of homeowners who responded to a Bankrate study said they don’t know what the interest rate is on their home (Credit: iStock)

Mortgage rates hit a three-year low earlier this week, so is it time to refinance? That’s a tough question for one in four homeowners who don’t even know what their current rate is.

Around 27 percent of homeowners who responded to a Bankrate study said they don’t know what the interest rate is on their home, according to Fox Business. A third of homeowners between age 29 and 39 didn’t know their rate and 23 percent of people aged 56 to 74 don’t know their rate, the survey found.

The 30-year fixed-average fell to 3.45 percent this week, nearly a full percentage point below this time last year, and the lowest rate since the fall of 2016.

The lack of knowledge of some homeowners could lead to serious financial consequences for them. Around 11 million people could refinance their mortgages at current rates and save an average of $268 per month. Homeowners with adjustable-rate mortgages could find themselves unprepared for hikes.

Mortgage rates rose through 2018 as the Federal Reserve raised their benchmark interest rate, which heavily informs mortgage rates. That worried builders, who figured higher rates would discourage buyers, particularly those who live in areas with historically high home prices like Los Angeles.
The Fed steadied and then began dropping its interest rate last summer, bringing down mortgage rates with it. The benchmark rate has been 1.55 since November.
Buyer sentiment has been strong this winter, prompting more open houses than usual across the country. Low rates are expected to drive strong activity in the typically slow first quarter. [Fox Business] – Dennis Lynch


Related Articles

arrow_forward_ios
(Illustration by The Real Deal)
Americans bought 5.6M homes last year — the most since the bubble
Americans bought 5.6M homes last year — the most since the bubble
(Illustration by The Real Deal)
How builders are changing America’s suburbs to fit the times
How builders are changing America’s suburbs to fit the times
The median existing-home price exceeded $300,000 for the first time last year (iStock)
Vicious cycle creates “huge supply crunch,” pushing home prices up
Vicious cycle creates “huge supply crunch,” pushing home prices up
(iStock)
Want a home in Greenwich? Data says you’d better hurry
Want a home in Greenwich? Data says you’d better hurry
Overall, the number of housing units that started construction last year was up 7 percent from 2019. (iStock)
Residential construction had busiest year since 2006: MBA
Residential construction had busiest year since 2006: MBA
(iStock)
Homebuilder sentiment falls for second month in a row
Homebuilder sentiment falls for second month in a row
(iStock)
Homebuying up again, but rising mortgage rates depress refinancing
Homebuying up again, but rising mortgage rates depress refinancing
Knock CFO Michelle DeBella and CEO Sean Black (Photos via Knock; PR Newswire)
Knock hires ex-Lyft, Uber exec as first CFO
Knock hires ex-Lyft, Uber exec as first CFO
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...