One-Third of Homeowners With Low Mortgages Won’t Give Them Up, Survey Finds

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A new survey from Best Interest Financial, St. Clair Shore, Mich., and Clever Real Estate, St. Louis, Mo., found that 35% of current homeowners with mortgage rates under 6% wouldn’t give up those mortgages for “any reason.”

For those with mortgages under 3%, 52% said they wouldn’t give it up for any reason.

About one in five said they would consider giving up their mortgage rate due to a major life change, like having a child or moving for a job. One in eight would give it up for the right home.

Forty-seven percent of borrowers with mortgages under 6% do not think they could afford one at the current rate.

Payments weigh heavily–one in 10 homeowners say mortgage payments are their biggest financial stressor. For those paying above 6%, almost two-thirds of respondents say they’ve cut back on spending, worked a side gig or made other sacrifices to pay it.

On the flip side, some borrowers aren’t happy about their relationship to their mortgage–20% say they feel “trapped” by it.

Homeowners with high rates are much more likely to feel negative emotions about their mortgage. Only 22% of borrowers overall have negative feelings, compared with 41% of those with a rate of 6% or more.

Twenty-six percent of borrowers with a rate of 6% or more say their mortgage is unaffordable, triple the 9% of homeowners with a rate under 6% who say the same.

Sixty percent of borrowers with a mortgage over 6% say they could not comfortably make their mortgage payments if their income decreased at all.

Overall, 52% of borrowers have regrets about their mortgage, and 59% say they weren’t very informed about their mortgage options when they purchased their home.

And, 49% of mortgage holders say rates have affected their housing decisions. Eighty-seven percent intend to remain in their homes over the next two years.  

While falling interest rates might increase the share of homeowners willing to sell, two-thirds don’t think mortgage rates will ever return to pandemic-era lows.

For those who will need to move at some point, 58% would prefer to buy and sell when rates are low, compared with 42% who say they would prefer to buy and sell when home prices are low.