Despite low mortgage rates, the October First Command Financial Behaviors Index^TM reveals that many Americans are not taking advantage of this opportunity to refinance their mortgage because of the continued economic instability. The Index, commissioned by First Command and conducted by Sentient, examines financial behaviors, attitudes and intentions among U.S. consumers ongoing since February 2008.
The October First Command Financial Behaviors Index^TM indicates that only 38 percent of middle-class homeowners have refinanced their mortgage in the past three years, despite record low mortgage interest rates. It seems that consumers who are advised by a professional are more likely to refinance their mortgage (44%) than those without the help of a financial planner (35%). In this economic uncertainty, having a professional financial planner can often make homeowners feel more confident in their decisions. Professional financial planners provide this security because they are knowledgeable about their clients’ personal finances as well as the financial industry as a whole.
Americans who refinanced their mortgage in the past three years have done so for the following stated reasons:

• Want a lower interest rate (71%)
• Want to secure a lower monthly payment (33%)
• Change the terms of the loan – like converting a 30 year loan to a 15 year loan (15%)
• Want to take cash out of the equity of the home (8%)

Many homeowners are not taking advantage of these low interest rates to refinance due to economic reasons, suggesting that Americans still feel uncertainty about the economy and insecure in their personal finances.
For more information about the First Command Financial Behaviors Index^TM, please visit their website.