One of the keys to investment success is to minimize your expenses. When it comes to an equity portfolio an investor’s ability to keep trading fees, management fees, and capital gain taxes on the low end will have a significant impact on their long-term success (i.e., performance). This concept is lost on many investors. Apparently, this apathy carries over to our real estate investment(s)… more specifically our home mortgage!
This valuable white space is primarily reserved for discussions pertaining to equity investing, but the results captured on this graphic are so absurd, I feel compelled to discuss it. In summary, the graphic shows the why have you not refinanced your home loan poll results. Only 41% had a viable answer. They either just did refinance, are already considering it, or are not eligible. The other 59%...
Apparently don’t like money!
The reasons run the gamut from I’m too busy to it’s too much work to the big one… I’m not sure it’s worth it. These reasons along with the others are all based in 1) Laziness or 2) Lack of knowledge (therefore you are not going to explore the idea). Both of these thoughts don’t cut the mustard.
Interest rates are still at historical low rates. You owe it to yourself to explore the opportunity to save yourself some money… that you can reinvest and grow. (See my post: The Historic Opportunity for an example of how to grow this found money).
Let me share my recent personal example that puts these excuses to bed. This month we completed our latest refinance. We took our 3.75% mortgage rate (on a 7/1 arm loan) down to a 2.99% mortgage rate (on a 30-year fixed loan). This will save us nearly $6,000 a year in monthly payments. By the way, we had just refinanced two years ago to get that 3.75% rate. The kicker… the cost to do this loan was $1,900. (For those of you who are Costco members, we did this mortgage through them… amazingly cheap and a wonderful process!).
Bottom line: it is a wonderful time to refinance for nearly EVERYONE and there are plenty of firms willing to assist you. And in my case, as my great Uncle Phil would say: “If you find it at Costco, buy it… because you are not going to find it cheaper anywhere else.” True indeed… if you can get this done at Costco, you have no more excuses!
Note: Nothing contained herein this letter should be considered to be investment advice, research or an invitation to buy or sell any securities. Chart source: YouGov for Forbes Advisor