COLUMBIA, Mo. — Refi. com, an online digital lending platform and matching service that connects homeowners with lenders for mortgage refinancing, reports that one-third of homeowners say they are refinancing or likely to refinance within the next two years despite elevated mortgage rates.
The findings are based on a nationwide survey of more than 1,000 homeowners conducted by Mortgage Research Center LLC. (Refi.com is a brand of Mortgage Research Center LLC).
“The popular narrative around refinancing has centered almost entirely on borrowers who locked in sub-3% rates during 2020 and 2021 and have no incentive to move,” said Kyle Bass, production business manager at Refi. com. “Those borrowers are real, but they are not the whole market. A significant share of today’s prospective refinancers bought or refinanced at 5.5% to 7% or higher and are actively evaluating their options.”
According to Refi. com, many homeowners may still benefit from refinancing despite today’s interest rates. A survey found that 75% of homeowners considering a refinance have mortgage rates above 5%, while nearly half are paying more than 6%, meaning even small rate drops could lead to significant savings.
More than half of interested borrowers are Gen Z or millennials, most with credit scores of 680 or higher. The top reason for refinancing is to lower monthly mortgage payments or secure a lower interest rate, while others want to access home equity or pay off existing debt.
Refi.com explained that many homeowners are delaying refinancing because they are unsure how the process works, whether they qualify, or if it will actually save them money. Less than half feel confident calculating the break-even point, which experts say is key to making an informed decision.
The survey also found common misconceptions persist, including the belief that rates must drop significantly or that homeowners need at least 20% equity to refinance. In reality, borrowers are primarily looking for lower interest rates, reduced monthly payments, longterm savings, clear loan terms, and low closing costs.