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A Third of Borrowers Don’t Know Their Mortgage Rate

by Lark Turner

A Third of Borrowers Don't Know Their Mortgage Rate: Figure 1

A third of homeowners aren’t exactly sure what interest rate they’re paying on their mortgage, according to a Bankrate study.

The results of the study, released Monday, aren’t encouraging for proponents of well-educated homeowners and homebuyers. It asked homeowners how confident they were about their mortgage rate. 65 percent responded that they were “very confident.” Another 35 percent responded they were either “somewhat” confident to “not at all” confident.

A Third of Borrowers Don't Know Their Mortgage Rate: Figure 2

The study also asked respondents how high interest rates would have to go before they would be discouraged from buying. In response, a third said they “would still consider buying if the 30-year fixed climbed to 10 percent or higher.”

Misunderstandings about mortgage rates may present a good opportunity for some lenders, but they suggest that many homeowners would be unlikely to take advantage of opportunities to maximize their equity and cut down on monthly payments by refinancing.

See other articles related to: mortgage rates, bankrate

This article originally published at https://dc.urbanturf.com/articles/blog/a_third_of_borrowers_dont_know_their_mortgage_rate/9480

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