Common-Sense Refinancing Options Could Help Arizonans and Stabilize Housing Market

Arizona PIRG

Data released today by the Arizona Public Interest Research Group (Arizona PIRG) and the Center for Responsible Lending finds that making it easier for homeowners to refinance their mortgages could give consumers more options, save money, and stabilize Arizona’s housing market. In Arizona alone, over 300,000 households would qualify, saving them about $937 million.

“Right now, mortgage rates are below 4%, but nearly half of homeowners are stuck paying 5% or higher because they cannot refinance,” said Diane E. Brown, Executive Director for Arizona PIRG. “Higher mortgage rates may benefit Wall Street banks that hold mortgage-backed securities, but it makes no sense for homeowners to be stuck paying above-market rates at a time when housing debt is a drag on the economy.”

Congress is currently considering reforms that, for homeowners who are current on their mortgages, would lift unnecessary barriers to refinancing and allow consumers to shop around when refinancing their loan.  

According to the data released today, adopting these reforms would help over 300,000 Arizona households, allowing them each to save $2,944 on average. Nationwide, 13 million would qualify, for total savings of $35 billion to the country’s economy.

“Congress has an opportunity to bring struggling homeowners much-needed relief and stem the tide of foreclosures,” concluded Brown.  “Members of Arizona’s Congressional delegation should come together on these common-sense solutions.”