Some homeowners may never refinance, while others may refinance frequently. This is a decision that depends largely on personal preference. Sure, there may be some financial benefits to refinancing, but for some homeowners, those benefits are not worth the hassle of refinancing a mortgage. For these homeowners, the overall amount of savings or the opportunity for lower monthly payments simply isn’t worth the effort of investigating refinancing options, comparing lenders and paying closing costs to get a refinance.
Are some homeowners just lazy?
Yes, and let’s face it, we’ve all been to a friend’s house and found lots of dust under the couch or unfolded laundry lying on the floor. However, laziness is usually not the culprit when homeowners choose not to refinance when they have the opportunity to save money overall or lower their monthly payments. In these cases, homeowners may simply decide not to refinance because they don’t have the confidence to make the right decision. These homeowners have essentially decided that they are happy with their current financial situation and are not willing to make changes that may or may not improve that situation. If all the work is done for them and they are assured that their financial situation will improve, then these homeowners will most likely refinance their home.
Do some homeowners just not understand the financial benefits?
This may also be true. Homeowners who do not fully understand the potential savings that may be involved in refinancing are unlikely to undertake the refinancing process. For these homeowners, their efforts don’t seem to be worth the benefits. If homeowners had a clearer understanding of the situation, they might see things differently, but in this case, homeowners may not understand the consequences of refinancing.
Consider the factors involved in refinancing. Most of the equations used to justify the benefits of refinancing are quite complex. There are calculators available online that make it very simple for homeowners to enter known information and obtain the desired results. However, these calculators usually do not explain how to perform the calculations. This can make it difficult for some homeowners to simply accept the results produced by these calculators. In such cases, homeowners are unlikely to be inclined to automatically accept the results produced by these calculators. In addition, homeowners may not consider refinancing until they are able to confirm the results of these calculations. Depending on the homeowner’s mathematical ability, this may be a short process or a long one.
Can you convince a homeowner to refinance?
This is a difficult question to answer because it depends on many factors. Some homeowners may be so trusting that they can be convinced to refinance with little effort. Conversely, some homeowners may be quite leery of their financial situation. These homeowners may be skeptical of claims that refinancing will improve their financial situation. These doubts can make it extremely difficult for homeowners to be convinced to make changes. Once skepticism begins to develop, homeowners may seek more information about the issue or become less receptive to more information. While one scenario may result in the homeowner being more likely to be persuaded to refinance, the other may make him less willing to refinance.