Posted To: MND NewsWire
Why are so many people holding on to mortgages with high interest rates? Sentiment? Inertia? Apparently not. In the current issue of CoreLogic's MarketPulse , Principal Economist Molly Boesel drills down into the universe of borrowers who are standing fast with their old loans, even though it looks on paper like a refinance would be a smart move. She finds that many of these borrowers haven't refinanced either because they can't or it really isn't worth it. Looking at the mortgages that were outstanding at the end of May, Boesel found that 41 percent of them representing 31 percent of unpaid principal balance (UPB) had mortgage rates greater than 4.38 percent , roughly 100 basis points higher than the current rates at that juncture and a point at which refinancing makes financial sense. Eighteen...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
from Mortgage News Daily http://ift.tt/2du4f7y
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