February 6th, 2019
It’s looking like refi’s are finally getting a second wind at the start of 2019. According to Black Knight, due to the recent dropping of interest rates, roughly 2.9 millions homeowners now have the potential to reduce their interest rate by as much as 0.75%. The company also states that cash-out refi business also has a chance of booming in early 2019 as tappable equity is up for a large portion of homeowners. One important thing to note is that the majority (~90%) of the refi opportunity present applies to loans that were originated prior to 2011. Loan officers should be mining their databases to find older borrowers (or fall-through borrowers) who may benefit from a rate reduction or a cash out refinance. Be sure to dig into your clients’ financial goals to see if refinancing (cash-out or R/T) would be beneficial to them, as we can’t expect this window to be open for long.