Millennials are taking advantage of low rates* by refinancing their mortgages, according to new data from Ellie Mae.
Over the last year, the number of refinances from those who fall within the ages of the Millennial generation jumped from 8 percent to 14 percent among all other home loans. The data shows that refinances among Millennials increased for FHA Loans, Conventional Loans and VA Loans. Low interest rates is being named as one the main drivers for this trend among Millennials.
Refinancing can provide an opportunity for homeowners to lower their monthly payment by refinancing into a lower interest rate. A change like this can significantly lower a payment. Additionally, refinancing can allow a homeowner to consolidate debt, pull out cash through equity and also allow the opportunity to prevent payments from rising through refinancing to a fixed-rate mortgage.
To add to this, it was recently reported by the Federal Reserve that homeowners across the country have built up a record amount of home equity to the tune of a collective $26 trillion. Further, the Federal Reserve states that homeowners nationally own above 60 percent of the value of their home.
Combine the amount of equity people have built up with low rates and it may be the ideal time to refinance, and Millennials are certainly taking advantage of it.
By resetting the terms of your home loan you may be able to increase your monthly cash flow. At Element Mortgage, we have many years of experience helping homeowners refinance in the Roseville area. If you are interested in learning more, make sure to contact us today.
*©2019 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply.