What Are Homeowners Doing With Refinance Savings?
Posted on February 08, 2013 at 12:03 PM EST
Refinancing homeowners dropped their interest rate an average 1.8 points last quarter, according to numbers released this week by Freddie Mac, paying about $3,600 a year less for a mortgage of $200,000. While prudent borrowers will use that extra cash to pay down debt, many are either forgoing the savings to shorten the term of the loan, or are spending it.