What are the reasons why some will not be willing to refinance their mortgage? You could say some reasons are psychological. A lack of motivation might contribute to not refinancing. Is there a way to motivate someone to refinance? Yes, it comes in the form of showing them what NOT refinancing may cost them.
And yes, it can definitely cost a lot….far more than you could ever imagine.
The most likely reason many do not refinance is they assume they will be turned down. Assumptions of this nature are not good if not outright self-defeating. Remember, the longer you stick with an interest rate on a mortgage that is too high, the more your funds will be drained paying interest instead of paying the principle.
So, avoid making any assumptions about not being awarded a refinancing offer.
Refinancing a loan is not always difficult. If you have good credit, you might likely be able to refinance without much trouble. Even those with bad credit may discover their options are far more open than they would otherwise realize. While some banks and financial institutions may have stringent requirements in place regarding who they will refinance, there are lender more than willing to issue a refinance offer to someone with less than stellar credit.
Truly, all the talk in the world about how wise it is to refinance may never actually motivate someone to actually do so. One of the best way to gain the motivation to refinance would be to simply run figures through a refinance home mortgage calculator. Once you look at what you are currently paying and compare it to a better rate, you quickly realize you may very well be overpaying. In fact, the amount of money you may be paying for the next few years might be so enormous, you realize refinancing really is the best and wisest option to explore.
Refinancing can be considered an abstract term until the day actually arises where you learn that you are literally giving away money that could be put into long term investments. For those interested in getting a better handle on their finances, refinancing a current mortgage rate might be the best step to take.