The tool arrives at a time when mortgage rates have dropped compared to last year, sparking renewed interest in refinancing.
Refinance applications increased 1% from the previous week and were up 106% compared to the same week last year, according to the Mortgage Bankers Association.
“With rates almost a full percentage point lower than a year ago, refinance applications continue to run much higher than last year’s pace,” said MBA deputy chief economist Joel Kan. “It is a positive development that there are homeowners who can benefit from a refinance as rates continue to move lower.”
Although the potential for refinancing remains limited due to many existing mortgages with sub-5% rates, Kan added, some borrowers still stand to gain from refinancing – which UWM hopes to capitalize on with its AI-powered system.
“The refi boom is here, and we know there are millions of borrowers who will benefit from a refinance right now,” said Mat Ishbia, president and CEO of UWM.
Source: mpamag.com