Flyhomes [1] has announced its subsidiary, Flyhomes Mortgage, will now cover the cost to refinance mortgage loans [2] when interest rates drop through a new product called Buy Now Refi Later. With this launch, Flyhomes Mortgage’s Buy Now Refi Later [3] becomes the first and only refinancing product on the market without lender fees, third party costs or timeline requirements.
A January 2023 survey of aspiring homeowners in the United States 18+ years of age who hope to buy a home within the next 36 months found that 78% have slowed or stopped their search altogether. When respondents were asked to select the reasons for pulling back, including home prices, housing inventory, inflation and recession concerns, interest rates were overwhelmingly chosen as the number one reason, selected first by 86% of respondents.
“Far too many buyers have been pushed to the sidelines because of interest rates,” said Tushar Garg, co-founder and CEO of Flyhomes. “Flyhomes was founded on the principle of People, Not Properties, and what makes us unique is we put the client at the heart of everything we do. This means that in addition to incredible client service, we’re always analyzing the market to determine what tools our clients need to get into their dream home. As we’ve done in the past with Flyhomes products like Flyhomes Cash Offer and Buy Before You Sell, Flyhomes Mortgage identified a need, we benchmarked competitive offerings and went beyond anything on the market today to ensure our customers can buy a house on their timeline.”
The recent survey found that of the respondents who reported slowing or stopping their home search due to interest rates, 45% agreed they were worried about being locked into a rate they can’t afford long-term, yet 67% said they’d purchase a home now if given the opportunity to refinance later to a lower rate without paying closing costs.
Survey data also revealed a significant knowledge gap around the refinancing process. Almost half of all respondents admitted that they do not feel confident they fully understand the home refinancing process – with 77% of those saying they don’t understand what refinancing entails, and 61% saying they don’t understand how to qualify. Refinancing confidence also exists on a generational spectrum, with Baby Boomers 52% less likely than average to say they aren’t confident in their knowledge of the refinancing process, while the youngest respondents in the Gen Z cohort were 35% more likely than average to say they aren’t confident.
“The survey findings reinforce just how damaging the rise in interest rates has been on the buyer psyche and how much education and product innovation the mortgage industry needs to do,” said Dan Richards, EVP of Flyhomes Mortgage. “Learning that two-thirds of reluctant buyers would purchase now with a product that allowed them to refinance later without paying closing costs signals a major gap in the marketplace. With the launch of Buy Now Refi Later, Flyhomes Mortgage now has a decided competitive advantage when it comes to capturing this buyer segment, having the best product, the best terms and the best pricing available.”
To read the full report, including more data and methodology, click here [2].