In the current rate environment, Sora is currently seeing 4 key trends
Four trends Sora has observed among its customers:
Larger than normal rate spreads for all loans: Time and time again, we’ve seen the importance of comparing multiple lenders for rates. As rates have been rising coupled with high volatility, we have been able to bring rates down by 30% for our customers by comparing lenders. “The volatility in mortgage rates has widened the gap between what various lenders are offering. That suggests borrowers can benefit significantly from shopping around for the lowest rate” - Freddie Mac economist Sam Khate
Auto loan refinancing opportunities remain: For the majority of clients, we see an opportunity to save money by refinancing them into a new car loan as most individuals receive sub-optimal pricing from their dealers. By instead, refinancing car loans with credit unions, we are oftentimes able to save as much as a couple hundred dollars a month for our clients. Additionally, there is high velocity in auto financing with Americans taking out $60B / month in auto loans and 12.7% (compared to 7.3% 1 year earlier) of car buyers are financing their purchase with an auto loan payment of more than $1,000.
Shifting mix of home loan activity: Despite higher mortgage rates, we’ve continued to see loan activity for HELOC, cash out refinances and new loans. Cash out refinances have been an especially good option for clients who need access to cash and are already equity rich in their homes.
Bottled up student loan activity: We’ve seen activity in the student loan space for refinancing individuals from one private loan into another. Often times, we’ve been able to find people lower rates due to increases in credit score and income since they first took out the loans as students. Additionally, we are primed for when the payment moratorium ends, discussing with clients about whether they qualify for any student loan forgiveness assistance, whether refinancing is right for them (even though they give up the right to future government assistance), and if they decide to refinance, what the best rate is for them.
