Half of Consumers Don't Understand Mortgage Modification or Refinancing Requirements, New Survey Says
June 07, 2010
About half of American consumers with a home mortgage don't understand the requirements to qualify for a loan modification or refinancing to get better mortgage rates, says newly released findings from the Western Union Global Business Payments Money Mindset Index, a national survey of 3,000 consumers.
The result demonstrates the need for more consumer education on loan modification and refinancing, Western Union says.
Other findings were more encouraging. About a third of consumers, 34%, reported they had contacted their mortgage companies about loan modifications, and 9% had gotten their loans modified in the last six months.
Most consumers, 78%, said they expect their financial situations will improve or remain the same in the next six months, and most reported having taken proactive steps to address their finances. Almost three-quarters of respondents, 73%, said they had cut back on spending, with 61% saying they switched to bargain retailers, such as Walmart and Target, and 39% saying they had crafted a household budget.
Money-Saving Tips for Homeowners
Western Union offers the following money tips:
- Pay down high-interest debt on car loans and credit cards. Interest from these loans can't be deducted from your taxes.
- Put extra money you save each month toward paying down the loan principal to build equity if you don't have other debt.
- Build emergency savings. Set aside some cash each month--even as little as $20 will help--into a savings or money market account.
Western Union senior vice president David Shapiro said in a prepared statement that the index showed resilience of the US consumer.
"With Americans understanding how to better manage their mortgage and spending, they are positioning their households to survive and thrive in this economy," he said.
