Why refinance is more important than ever to borrowers

by Candyd Mendoza27 Oct 2020

Despite challenges of the coronavirus crisis, the mortgage industry remains at the height of a COVID-led refinance boom, according to a new survey from United Wholesale Mortgage (UWM).

With interest rates at record lows, the total share of refinances rose to 58% of all closed loans in September, according to data from Ellie Mae's latest origination insight report.

"This research shows us that cash-out refinances are more important than ever to borrowers who are staying in their homes, and we plan to continue to monitor trends happening in the home-buying, refinancing and ownership phases for borrowers as we continue to navigate these unprecedented times," said Sarah DeCiantis, chief marketing officer of UWM.

Results of UWM's recent survey also showed that nearly half of the 1,000 homeowners surveyed moved to the suburbs in search of greener, more spacious pastures. Nearly 60% of the respondents said they are starting or continuing home renovations in the coming year.

Read more: The myth of the urban exodus

However, space comes with a hefty price tag. Nearly three in four homeowners have sold their home above asking price, according to UWM. One in four respondents who moved to a new home listed a pool as a top must-have feature.

"We keep our fingers firmly on the pulse of what is happening in our industry to arm independent mortgage brokers with everything they need to help borrowers in today's marketplace," DeCiantis said.