Skip to main content

Over Half Regret New Mortgages During Pandemic

Keith Griffin
Sep 01, 2020
Smartphone and laptop user

Buyers remorse is the feeling a consumer gets soon after making a purchase. It can be as high as almost 70% with cars, according to AutoTrader. Turns out over half of mortgage recipients share similar feelings.
A new study by LendEDU claims 55% of homeowners regret taking out a mortgage during the pandemic. Somewhat ironically, a combined 72% cited the coronavirus pandemic as the reason they decided to take out a mortgage to become homeowners, with many specifically attributing the current low-interest-rate lending environment.
Here are the reasons people feel they should not have become a homeowner during the pandemic:
  • Should have waited for financial reasons – 30%
  • Should have waited for social/life reasons – 10%
  • I was not prepared for homeownership – 8%
  • Other – 7%
LendEDU found 26% of all poll participants have refinanced their home loan during the pandemic, while 73% have not, and 1% opted not to say.
Amongst new homeowners specifically, 41% have already refinanced their mortgage to capitalize on the coronavirus interest rates compared to 25% of pre-coronavirus homeowners that have also utilized a mortgage refinance during the pandemic.
And, nearly every single homeowner that has refinanced their mortgage during the pandemic has been able to secure a more favorable interest rate.
When LendEDU asked those homeowners who haven’t refinanced their mortgage during the pandemic why they haven’t done so, 44% said they never considered it, 23% wanted to keep building credit, 8% did not want an appraiser in their home or couldn’t find one, 6% applied but haven’t heard back yet, and 4% applied but were denied.
homeowner mortgage regret
Other findings from the report include:
  • 54% of all homeowners (took out a mortgage either before or during the pandemic) who have agreed to something like pandemic forbearance or a reduced monthly minimum payment have seen incorrect negative marks on their credit report.
  • 26% of all homeowners have refinanced their mortgage during the pandemic, with 90% receiving a lower interest rate than before.
  • 17% of all homeowners have struggled to pay their mortgage due to getting laid off, while 20% have struggled due to general financial difficulties during the pandemic recession.
  • Only 58% of all homeowners indicated they have not struggled to make mortgage payments during the pandemic.
  • 16% of all homeowners have agreed to pandemic forbearance with their mortgage lender, while 11% have agreed to a reduced monthly minimum payment. Those percentages are 18% and 25% for only new homeowners.
Sep 01, 2020
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021