Survey: Mortgage Refinancing Applicants in Market for Lowered Rates, Energy Bill Savings

The fact that mortgage refinancing is on the rise nationwide, as interest rates are falling, is far from a coincidence.

A recent survey by GuideToLenders.com, a mortgage resource for consumers, showed 34 percent of homeowners who refinanced between August and October did so to obtain a lower interest rate.

The Energy Information Administration (EIA) expects increased rates for heating oil and electricity* this winter; these rising home heating expenses may be propelling some homeowners to offset such costs through lower rate mortgages.

“Interest rates are constantly fluctuating, so it’s difficult to time your loan so that you’re getting the lowest rate at any given time. Shopping around for a good rate may be easier if you find a loan officer who can help you compare loan packages at several financial institutions,” advises Francine L. Huff, author of “The 25-Day Financial Makeover: A Practical Guide for Women.”

According to the EIA, 62 percent of homes use heating oil and electricity as their primary means to heating their homes. Combine EIA’s expectations with the National Oceanic Atmospheric Administration’s (NOAA) prediction that this winter will be 8 percent colder than last winter, and many Americans could see a jump in household expenses.

In the Northeast alone, households may pay seven percent more in heating oil energy costs this winter compared to the previous winter. It’s not hard to see why this would lead many to look into a home mortgage loan refinance.

GuideToLenders.com’s. survey also revealed that 13 percent of consumers were concerned about fast loan processing, and 4 percent cared about customer service.

* Click here to learn about ways to reduce your energy bill.