Home >> Media >> The MReport Webcast: Monday 3/2/2015
Print This Post Print This Post

The MReport Webcast: Monday 3/2/2015

Research released by the National Bureau of Economic Research shows 20 percent of homes failed to refinance in December 2010, costing them tens of thousands of dollars in savings. An estimated four to five million borrowers whose loans were owned by Fannie Mae or Freddie Mac were predicted to take advantage of the FHFA's Home Affordable Refinance Program launched in 2009, but only about 3.2 million mortgagors had refinanced through HARP as of November 2014.

Houses lose out on big money when they fail to take advantage of low interest rates and refinance. U.S. households could have saved $1.5 billion had they refinanced, with the median home having the potential to save $160 per month on the remaining life of their existing loan. A household with a 30-year, fixed-rate mortgage of $200,000 dollars at an interest rate of 6.5 percent that refinances when rates fall to 4.5 percent will save more than $80,000 dollars in interest payments over the life of the loan, even after including all the typical refinancing costs.

Research released by Arch Mortgage Insurance Company in its Winter 2015 Edition of Housing and Mortgage Market Review showed an increased risk for lowering home prices in oil-producing states. Midland, Texas ranks highest for risk of lowering home prices at 60 percent, and Louisiana, with a 35 percent chance of decline, and North Dakota, at 37 percent, move into the moderate-risk category, while six states – Alaska, Colorado, New Mexico, Oklahoma, Texas, and Wyoming – register in the 15 to 20 percent range. New York has the largest improvement in score showing a probability of only 9 percent.

About Author: Jordan Funderburk

x

Check Also

The Week Ahead: Balancing the Economy and Housing

An upcoming webinar will feature Patrick F. Stone, and Economist Dr. Bill Conerly analyzing the economy and its impact on housing, and provide predictions on the upcoming quarter and the remainder of 2023.