Given the low-value interest environment during the 2020 and you can 2021, it is interesting observe the activity inside refinance rates and to adopt what can bring about residents so you’re able to forgo a process that can lead to like cost savings. Several researchers have developed you’ll be able to answers to that matter. Basic, refinancing is an elaborate financial calculation that really needs extreme borrower day and effort (Secrets, Pope, and Pope, 2016; Agarwal, Rosen, Yao; 2016). Specific home owners is suspicious out-of economic institutions’ intentions and may even be confused about the distinctions involving the financial plus the servicer plus don’t remember that per have different bonuses to have encouraging refinancing (Johnson, Meier, and you will Toubia, 2019).