Refinancing – worth the hassle? Part 2
January 25th, 2007 | 
Author: Do Some Homeowners Just Not Understand the Financial Benefits?
This may be true as well. Homeowners who do not fully comprehend the potential savings which may be involved in re-financing are not likely to undergo the re-financing process. For these homeowners it may seem as though the efforts are not worthwhile for the benefits that are received. If the homeowner had a clearer understanding of the situation they might have a different opinion but in this case the homeowners may be unable to comprehend the ramifications of a re-finance.
Consider the factors involved in re-financing. Most of the equations use to justify the benefits of re-financing are rather complex. There are calculators available online which make it extremely simple for homeowners to enter the known information and obtain the desired results. However, these calculators typically do not explain how the calculations are performed. This can make it hard for some homeowners to simply accept the results produced by these calculators. When this is the case the homeowner is not likely to be inclined to automatically accept the results generated by these calculators. Additionally, the homeowner may not consider re-financing until they are able to confirm these calculations. Depending on the homeowner’s mathematical skills, this could be either a short process or a long process.
Can You Convince a Homeowner to Re-Finance?
This is a hard question to answer because it depends on a number of factors. Some homeowners may be extremely trusting and may be convinced to re-finance with little effort at all. Conversely some homeowners may be quite guarded in terms of their financial situation. These homeowners may be suspicious of claims that the re-financing can improve their financial situation. These suspicions can make it extremely difficult for a homeowner to be convinced to make a change. Once suspicions begin to develop the homeowner may either seek out more information on the subject or become less receptive to additional information. While one case may lead to the homeowner being more likely to be convinced to re-finance the other case will likely make him less willing to re-finance.
Posted in Refinancing
I agree its often times hard to home owners to truly understand the benefit of refinancing. visit http://www.themortgagebankar.com
Honestly, I think a lot of the online calculators that are supposed to make it simple, make it more confusing, just because I don’t understand what all the calculator is doing. They never help me, I need to see all the numbers and calculations worked out before me for it to really make sense, but I think that’s partly because I’m a visual person.
One of the best ways to communicate the prudence of a refinance to consumers is to chart out the savings they realize from it. While you’re on the topic of a refinance, show them the value of interest-only loans, and be prepared to field their questions. For more information, check out this article: Does paying extra on your mortgage make sense? Showing your clients that you care about their financial future will go a long way in convincing them to refinance with you.
Often in the UK it is a decision between a refinancing, or remortgaging, and getting a secured loan. Whether you refinance or not is often down to whether the are any tie ins (redemption penalties) associated with the current mortgage. If you need the money it should be about the maths and personal circumstances of the borrower. Visit http://www.mortgagerefinancinguk.co.uk for info on uk finance.
I guess there is always an easier way …
It seems that this blog has stop updates for a long time ?
Another thought- someone who does not fully comprehend the process could also be someone who is not motivated enough. If a calculator says you can save a large amount of your monthly payment – seems most people would be interested.
For more information on refinancing, go to http://www.arkansasmortgageonline.com for helpful tips on all types of mortgage loans and options.