One of the greatest direct-to-consumer performers in the history of the mortgage industry has been the refinance boom we’ve enjoyed since 2008. Our “Elvis,” if you will. But many originators think it’s dead. MonitorBase doesn’t. Here’s why …
Between January 2017 and February 2018, there have been approximately 230,000 mortgages added to the books at a 5% interest rate or higher. Even more intriguing is the majority of these 5% loans were originated and locked prior to the massive sell-off that started in October of 2017. This means ... in the next few months ... we will see a tsunami of 5%-plus loans being added to the books! This is great news for government streamlines and agency appraisal waivers.
There is currently massive potentials in the cash-out refinance market. This is being fueled by noteworthy appreciation of residential real estate in most markets, and then mortgage interest write-off opportunities.
You may be asking, though, “Who would want to give up their 3.5%-fixed to do a cash-out with a current market-rate of, say, 4.5%?” Not many, of course … if that’s the whole story. Often it’s not!
What needs to be known … and wherein lies the potential … is the “blended rate” (after tax-deductible interest) when they payoff such things as credit cards; car loans; 2nd mortgages; student loans; home improvements; etc. The result may very well be a combined “cost of capital” that makes the higher first-mortgage rate very attractive, especially if your underlying first mortgage interest rate is already at 4.5%!
Today there are more than 3.9 Million Government and Agency loans have been created in the past 5 years at 4.5% or higher.
Any refi opportunities here?
MonitorBase has proprietary data-models that will help you find and mine high rate mortgages. Adding this platform of analytics to your marketing efforts will get you back in the game. And it’s a huge one!