If you are thinking about refinancing a loan, it is important to thoroughly explore your options. If you have uncertainty related to refinancing, find answers to any questions you have and take steps to protect your financial future (as well as your ability to stay current on payments).
Reviewing statistics on refinancing could also help you realize that you are not alone. In fact, an increasing number of people have chosen to refinance their loans in recent years. Ultimately, it is imperative to go over your circumstances on an individualized basis and make decisions that suit your unique needs.
How many people refinance their loans?
On their site, the Consumer Financial Protection Bureau published data on the prevalence of refinancing loans. According to the CFPB, closed-end originations went up by 26% during 2019 to more than 8 million. Moreover, a majority of this increase resulted from a surge in refinance loans. During 2019, Americans had 3.4 million refinance loans, compared to 1.9 million during 2018.
What are the benefits of refinancing?
For many people, refinancing a loan offers multiple benefits, such as a lower interest rate, and helps them secure more favorable terms on their loan. However, there are certain potential risks to consider with respect to refinancing, such as closing costs, the amount of time that it takes to refinance a loan and the possibility of your credit score going down.
If you are facing challenges related to your mortgage, make sure you examine resources and strategies available to help you address uncertainty and financial hardships related to your loan.