Refinancing Market To Hit Value .04 Billion By 2030 |Grand View Research, Inc.Posted by Mrudula Karmarkar on January 10th, 2023 The global refinancing market size is expected to reach USD 34.04 billion by 2030, registering a CAGR of 7.5% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growth can be attributed to the better financing options offered by the refinancing solutions, coupled with benefits such as lower interest rates and a convenient process. On the other hand, borrower benefits from favorable terms of loans in a cash-out refinance, which would generally be useful for medical, debt payment, and investment for long-term savings. Several refinancing solution providers are focusing on expanding their services to offer refinancing services efficiently. For instance, in March 2022, Better Holdco, Inc. announced the expansion of its mortgage services to the U.S. state of Hawaii, building upon the launch of Better Mortgage in the state of Massachusetts in November 2021. The company’s mortgage services are now available to almost 99% of the U.S. market, thereby facilitating real estate, mortgage, homeowner insurance, and title services while eliminating lender fees and commissions. Moreover, the growth of the refinancing industry can be attributed to the benefits of refinancing for personal and commercial activities. According to Freddie Mac, borrowers could reduce mortgage payments by an average of 1.15% in 2021 by refinancing first-lien conventional mortgages, saving about USD 2,700 in mortgage payments annually. Such a reduction in mortgage payments is expected to create lucrative growth opportunities for the market over the forecast period. The COVID-19 pandemic is expected to positively impact the growth of the industry. Several refinancing solution providers started expanding their loan capability to offer better services to customers. For instance, in October 2021, Caliber Home Loans, a financial service provider, announced an expansion of loan limits on conforming loans to USD 625,000 across its retail, wholesale, and direct-to-consumer channels. The previous limit was capped at USD 548,250, and expanding the limit would allow more borrowers to qualify for large loan amounts. The growth can be attributed to the rising investments made by banks and other financial institutions to enhance their technology and provide improved refinancing offerings to their customers aimed at boosting their experience. At the same time, banks and financial institutes are offering numerous refinancing options to customers with fixed-rate mortgages and lower interest rates. The aforementioned factors are expected to act as growth impellers for the industry. To Request Sample Copy of this report, click the link: https://www.grandviewresearch.com/industry-analysis/refinancing-market-report/request/rs1 Numerous players are focusing on developing and launching home financing solutions to help customers qualify for refinancing options. Such product launches are aimed at providing a better customer experience to the customers. For instance, in July 2021, Ally Home, the lending arm of Ally Bank that caters to residential mortgages, launched RefiNow, a home financing option. RefiNow caters to the needs of customers facing difficulties in qualifying or ending up with slower refinancing due to barriers such as lower income levels. Borrowers refinance their existing loans to benefit from reduced monthly payments so that borrowers can pay faster, modify their loan terms, and cash out the home equity value are also major factors contributing to the industry’s growth. Cash-out refinance is a mortgage refinance that enables borrowers to liquidate home equity built up over the years by paying the original mortgage. In a cash-out refinance, a new mortgage is obtained, which is higher than the original mortgage, by leveraging the home as collateral. The difference is paid out to the borrower in cash, which acts as a significant factor contributing to the market growth. The obtained cash can then be used to pay off the debt, eliminate the high-interest rates on credit cards, make home improvements, and invest in savings. Refinancing Market Report Highlights
Numerous mortgage lenders and banks worldwide, including JPMorgan Chase & Co, ALLY FINANCIAL INC., Rocket Companies, Inc.; Bank of America; and RefiJet, offer diverse mortgage refinancing solutions. These refinancing solutions include vehicle loans, fixed-rate mortgages, adjustable-rate mortgages, jumbo loans, and government loan solutions. Various providers are also focusing on leveraging technologies such as artificial intelligence and machine learning to automate mortgage processing, thus supporting industry growth. Furthermore, mortgage lenders and refinancers assist buyers with digital tools, such as mortgage calculators, providing an overview of the ongoing interest rates, loan tenure, and discount points as per the refinancing, which in turn, helps buyers choose the refinancing loan wisely. The COVID-19 outbreak is anticipated to have a positive impact on the refinancing market. As the crisis limited household incomes worldwide, borrowers started opting for financial services with lower interest rates to save money on the high-interest rates. Due to lagging economic activity, refinancing at a lower interest rate enabled the borrowers to reduce mortgage costs. The refinancing activity among high-income borrowers increased significantly compared to low-income homeowners. As a result, refinancing has risen significantly during the COVID-19 pandemic. List of Key Players in the Refinancing Market
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