While there are a ton of mortgages for millennials, the programs available to this demographic are the same programs available to Gen Xers, Baby Boomers, and any other generation buying or refinancing real estate.  Millennials, broadly defined as those born in the early 80s to the late 90s, are of the age where many take advantage of certain products more often than others.  For example, just based on age alone and being at the age of the typical first time home buyer, down payment assistance (DPA) programs, FHA financing, and certain other products are more prevalent for this generation.  But others are not excluded from obtaining the same type of financing.

Headlines focusing on millennials are often just working to capture web traffic by using the “M” word.  Take, for example, a recent headline that reads “refi rise sparked closing delay for millennials”, when in reality, the article references an increase in turn times across all products, with the result of delays for all products across all demographics.  In fact, the only reason the “M” word made the headline was to grab eyes.

“Millennials” is a term the real estate and mortgage industry uses to catch eyes and clicks, but what affects millennials is the same for all mortgage borrowers

If there aren’t specific mortgages for millennials, what should younger buyers look for when getting a mortgage loan?  Well, technology is dictating the speed at which things move, and the mortgage process is no different.  Younger borrowers tend to want a digital experience, and one that can work within a mobile environment – but this isn’t only a millennial desire.  People in general want things quickly, and operate primarily from their cell phones – across all ages.  Millennials in high priced markets often need some help with down payment assistance because home prices are high and down payment requirements can be restrictive – but again, first time buyer programs are available to all ages, not only millennials.

At MasonMac, we don’t have “mortgages for millennials” (neither does any other lender), but what we do have is a streamlined mortgage process, a digital experience, technology based systems that make things easy for borrowers to get a loan, and loan program options that meet the needs of all borrowers – down payment assistance programs, first time home buyer programs, Jumbo loans, reverse mortgages.  MasonMac is your home for all things mortgage.  If you’re looking for mortgages for millennials, ask one of our experts for help today, we’re here to answer your questions and help you feel comfortable throughout the process.

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So how do lenders offer “no closing cost refinance” loans?  Do these costs just disappear into thin air?  Nope.  The reality is that no closing costs loans are typically loans with higher interest rates – rates high enough for the final investor to offer a dollar amount credit that pays for all of the closing costs.  In simple terms, the lender pays the costs up front for a higher rate, and higher profit, in the long run.  Doesn’t sound like too good a deal for consumers, does it?  Actually, in a market where rates are going down, no closing cost refinance loans are one of the most savvy tools a consumer can use to save money both short and long term.

So how does it work?

A No Closing Cost Refinance can allow you to save money monthly without costing you dollars or equity

Well, in a market where rates are declining, borrowers will be more inclined to refinance their current mortgage – if they do so using a no closing cost refinance, there’s little risk that they’ll lose money on closing costs.  In other words, if they pay closing costs for a lower rate, then refinance again if rates continue to drop, it’s likely they won’t have recouped all of the closing costs from the initial refinance through their monthly savings.  Let’s say the initial refinance costs $3500, and the monthly savings for the borrower was $50.  To recoup that $3500, the borrower would have to hold their loan for 70 months, or nearly 6 years.  If they refinance any time before that, they’ll have lost money.  A no closing cost refinance eliminates that risk.  Even if the rate for the no closing cost refinance is a little higher – let’s say the savings is only $25/month – with $0 closing costs, even if a borrower only has the loan for 2 years, they’ll have saved $600.

In today’s market where interest rates are dipping, a no closing cost refinance option can be a simple and risk-free way for home owners to save money.  With today’s mortgage process being much easier than it was a few years ago for most borrowers, the process itself is also much more streamlined, making the incentive to save money bigger as the process is faster moving and less costly from a time standpoint.

While rate is certainly an important consideration, along with the term of your loan, a no closing cost refinance can eliminate the risk of paying double or even triple closing costs in a market where rates decline substantially.  Nobody knows where the bottom of the market is, or what the lowest rate will be, but if the savings make sense, and you can get those savings without costs, a no closing cost refinance can be a great way to improve your loan and save you money.

Want to see if a no closing cost refinance loan would be the best option for you?  Ask one of our experts today!

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