Truth: There is an unusually high number of incentives being offered today.

Why?

Lowest interest rates in history during 2020 also gave rise to the biggest refinance boom in history. Residential mortgage lending originations were estimated to total $3.4 trillion in 2020, which is about $1 trillion higher than 2019 (per Fannie Mae and the Mortgage Bankers Association).

Therefore, a ton of money was made by residential mortgage lenders last year. Those who are the most active and aggressive are keenly focused on maintaining this momentum throughout 2021 and beyond. In fact, to capture this business, lenders are introducing all sorts of new incentives to attract the attention of consumers who are contemplating a new purchase mortgage or refinance.

One of the largest mortgage lenders in the country had an IPO in August of last year, and another is having one next week. They are clearly positioning themselves to raise capital in support of even more products, initiatives and incentives – to solidify their market share and continued performance.

Some examples of what’s out there:

• Purchase Bonuses (a credit of up to 0.50% applied to the loan amount at closing)
• Incentives for Non-Self-Employed Borrowers (up to a 0.61% credit)
• Big PMI cost reductions (for private mortgage insurance when the down payment is <20%)
• Free interest rate lock extensions (up to 12 days beyond the initial lock expiration date)
• Refunds of up to 50% of the appraisal cost (if the report is not generated in 10 days)

Here’s the Point:  If you didn't refinance or obtain a purchase mortgage last year, you haven’t missed the boat.

Mike Kanuka, Founder & President