Mortgage Tidbit

January 23, 2007


I found this mortgage tidbit in Rob Carrick’s latest book How to Pay Less and Keep More for Yourself (book review) fascinating:

As of mid-2006, the total amount of outstanding mortgages was worth roughly $660 billion, with about $80 billion of that representing new mortgages and the rest representing existing mortgages. Of that $580 billion or so in existing mortgages, about one-third ($193.3 billion) was up for renewal during the year. Given the rather immense amount of money being renewed each year, it is a surprise to hear from our former mortgage insider how many people sign and send back the mortgage renewal form sent to them by their banks, even though the rate being offered is not discounted at all. “If I told you how many people do this, you’d be floored,” the insider said. “It’s close to 30 percent.”

Consider me floored.