Some homeowners may never re-finance while others may re-finance . This is a
decision which is mainly a matter of personal preference. Sure there are some
financial benefits which may result from re-financing but for some homeowners
these benefits are not worth the hassle of going through a mortgage re-finance.
For these homeowners the amount of savings overall or the opportunity to lower
monthly payments is simply not worth the effort of investigating the
re-financing options, comparison shopping for lenders and paying closing costs
to obtain a re-finance.
Are Some Homeowners Just Lazy?
Yes, let�s face it we have all stayed at a friend�s house to find dust bunnies
under the couch or unfolded laundry lying on the floor. However, laziness is
usually not the culprit when a homeowner opts not to refinance despite the
opportunity for an overall savings or lower monthly payments. In these cases the
homeowner may simply decide not to re-finance because they are not confident in
making the right decision. These homeowners essentially decide they are happy
with their current financial situation and are not willing to make changes which
may or may not improve this condition. It is likely that these same homeowners
would re-finance their home if all the work was done for them and they were
guaranteed an improved financial situation.
Do Some Homeowners Just Not Understand the Financial Benefits?
This may be true too. Homeowners who do not comletely know 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.
Think about the factors involved in re-financing. Most of the equations used
tovalidatey 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 tricky question to answer since it depends on countelss 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.
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