Brexit: More homeowners refinancing because of low interest rates

INDIANAPOLIS (WISH) —  Homeowners in the United States, including in central Indiana, are saving some money, in part, because of Brexit.

Brexit, along with other issues in the global economy, has pushed interest rates to record lows. That’s led many homeowners to refinance their mortgages.

Ruoff Home Mortgage in Greenwood  told 24-Hour News 8 the number of people asking about refinancing their mortgage has quadrupled since the Brexit vote.

“This recent situation has caused those rates to drop further by another half percent or so, give or take, depending on the term of the loan…[before Brexit] people were aware maybe they could have gotten a little lower rate, but it wasn’t worth the time or the costs to refinance. Now that extra half of a percent is making a difference for them,” said Mike Wise, vice president and branch manager at Ruoff Home Mortgage.

If homeowners are looking to refinance, Ruoff said they should first consider their goals. Do they want to save money long-term and reduce the term of their loan or lower their monthly payment? Once the homeowner figures out what they want to accomplish, they should talk to several lenders and compare their options.

Though the more significant surge has been in refinancing, there has also been a jump in mortgage applications for people to buy a home.

“There’ a lot of people who are in the market to purchase homes right now, and are pre-approved. They’re ready to go,  but there’s not enough inventory out there for buyers in our market and many markets around the country,” said Wise.