BOSTON (WWLP) – Secretary of the Commonwealth William Galvin is suggesting every homeowner look into their options to refinance following recent comments by Fed Chair Jerome Powell about raising rates to match inflation.
Galvin oversees most of the state’s registries of deeds and is disturbed by a recent study which showed that up to 14 million borrowers who would benefit from refinancing are not taking advantage of the current low interest rates.
“I encourage these homeowners to shop around now, before rates are raised, to see if refinancing is a good option for you. You may be in a position to save yourself a significant amount of money.”Secretary of the Commonwealth William F. Galvin
Those who own their home, have at least 20% equity in their property, have above average credit, and plan on staying where they are for a few years are in a good position to refinance according to Galvin.
Galvin, citing a study by Freddie Mac, also noted in a statement that there was a significant racial disparity among the roughly 20% of borrowers who have chosen to refinance. That study noting that while a higher proportion of Black and Latino homeowners have a financial incentive to refinance, only 19-23% have done so, compared with 32% of white borrowers.
Galvin’s website, www.sec.state.ma.us/rod, has more information on refinancing.
“It’s very important to make sure all borrowers have the information they need on refinancing. Nobody should be paying more than they need to be for their home, just because they aren’t familiar with the refinancing process,”Secretary of the Commonwealth William F. Galvin