Failure to Refinance
Households that fail to refinance their mortgage when interest rates decline can lose out on substantial savings. Based on a large random sample of outstanding U.S. mortgages in December of 2010, we estimate that approximately 20% of households for whom refinancing would be optimal and who appeared unconstrained to do so, had not taken advantage of the lower rates. We estimate the present-discounted cost to the median household who fails to refinance to be approximately $11,500, making this a particularly large consumer financial mistake. To shed light on possible mechanisms and corroborate our main findings, we also provide results from a mail campaign targeted at a sample of homeowners that could benefit from refinancing
Year of publication: |
2015
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Authors: | Keys, Benjamin J. |
Other Persons: | Pope, Devin G. (contributor) ; Pope, Jaren (contributor) |
Publisher: |
[2015]: [S.l.] : SSRN |
Subject: | Refinanzierung | Refinancing | Privater Haushalt | Household | Hypothek | Mortgage | Verbraucherberatung | Consumer advice | Immobilienfinanzierung | Real estate finance | Kosten | Costs |
Saved in:
freely available
Extent: | 1 Online-Ressource (31 p) |
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Series: | NBER Working Paper ; No. w20401 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 2014 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013032782