Over Half Regret New Mortgages During Pandemic

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:

 

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.