Articles Tagged with ''Refinancing''

Black Knight: Interest rate drop led to flood of mortgage prepayments in March

Prepayments see largest single-month increase in more than two years
Mortgage interest rates dropped throughout the month of March, culminating in interest rates closing out the month with the largest single-week decline in 10 years. As of the end of March, mortgage rates were at their lowest point since January 2018. And as one might expect, that drop in mortgage rates led to a massive increase in mortgage prepayments in March, according to a first look at March’s mortgage data from Black Knight.
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Quicken Loans will now let Vrbo hosts use rental income to refinance their mortgage

Income generated by short-term rentals will be used in underwriting
A little over a year ago, Airbnb partnered with some of the nation’s largest mortgage players, including Fannie Mae and Quicken Loans, to allow hosts using the short-term rental platform to use income from their rentals to refinance their mortgage. Now, Quicken Loans is at it again; this time partnering with Vrbo to allow users of that platform to use rental income earned through that short-term rental platform to refinance their mortgage.
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Hello refis? Mortgage rates just had the largest one-week drop in 10 years

Interest rates haven't been this low since January 2018
Just over six months ago, it appeared that refinance demand had all but dried up thanks to mortgage interest rates that were pushing past 4.5%. But my how the tables have turned. According to newly released data from Freddie Mac, mortgage rates just experienced the largest one-week decline in a decade.
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Housing market trends are stifling the jumbo mortgage market

But the WSJ says lenders aren't backing down
In the years following the financial crisis, mortgage lenders turned their attention to the jumbo mortgage market as high-end clients proved to be a safe and profitable bet. But now, recent trends taken a toll on the jumbo market, causing volume to fall 12% in the last year, a decline that outpaces the overall mortgage market by 5%. "Still, there are few signs banks are changing tack," The Wall Street Journal stated. "If anything, industry watchers say, they are becoming more competitive."
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Ellie Mae: Millennials’ interest in mortgage refinance spikes

In January, refis by Millennial borrowers accounted for 13% of closed loans
In January, slightly lower interest rates led to Millennial homebuyers increasing their requests to refinance their mortgages. Ellie Mae Executive Vice President of Strategy and Technology Joe Tyrrell said the uptick in refinances may indicate Millennials who previously purchased a home and are looking for an opportunity to take advantage of lower monthly interest payments.
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FTC accuses SoFi of lying about loan savings in misleading ads

Online lender allegedly overinflated savings claims on student loan refinances
For more than two years, SoFi has been making misleading claims in its television, print, and online advertisements and lying about the amount of savings its loan refinancing programs would bring to borrowers, the Federal Trade Commission said Monday. According to the FTC, SoFi “deceptively advertised inflated figures” about loan refinances, basically claiming that it could save borrowers far more than is actually the case.
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Goodbye refi: Rising interest rates all but erase refinance demand

Purchase loans now make up nearly 75% of all mortgages
While mortgage interest rates dipped ever so slightly in the last week, they’ve been trending up for the majority of this year. And it appears that the consistent rise in interest rates this year has all but dried up refinance demand. Is it time to say goodbye to refis for a while? It certainly looks that way.
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For loan officers who want steady business in 2018, it’s time to embrace cash-out refinances

Lenders hoping to boost their refi business this year need to change the way they sell
Remember when it was easier to sell homeowners on refinances? Mortgage interest rates were low enough that most owners could save money each month with a traditional rate and term refinance. As interest rates have risen, that has changed and lenders hoping to boost their refi business this year need to change the way they sell. Instead of promoting the savings homeowners can get from lower interest rates, they may consider trying a new angle...
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