Home loan refinances are hot with millennials
Now is a great time for young people to refinance their mortgage.
Home loan refinances by millennials recently reached a new multi-month peak, indicating that current mortgage rates are attractive to those looking to save money or make their monthly housing payments more affordable.
The growing trend reached 14% of all home loans that closed in September, the highest it’s been since February, according to the latest monthly update of the Ellie Mae Millennial Tracker. Among borrowers of all ages, the number of refinanced mortgages also rose, reaching 38% of all new loans.
VA loan refinances by millennials led all categories with 30% of new closings, followed by conventional loans with 17% and FHA refinances with 5%.
The Millennial Tracker data also paints a picture of typical millennial borrowers. They’re about 31.5 years old, two-thirds of them are married, more are men than women, and their credit score is around 732.
“With average interest rates falling to their lowest point in 2017, millennials are taking advantage of refinance opportunities,” Ellie Mae executive vice president of corporate strategy Joe Tyrrell said.
“While we are also seeing millennials with more purchase power, the uptick in refinances indicates maturity among those millennials who previously purchased a home and are looking for an opportunity to lower their monthly interest payments.”
finder.com provides a comprehensive guide to opportunities for buyers to cut costs or lower monthly payments. Learn more and see how the available options compare to your mortgage situation.
Millennials may also be influencing other housing trends, too, like the increasing popularity of mortgages from nontraditional sources. The majority of the United States’ top 10 home lenders are no longer banks. Home equity loans are also surging, and savvy borrowers are taking advantage of high-tech personal loans in some cases to get a rate and terms that best fit their needs.