Four in Five Recent Home Buyers May Look to Refinance in the Next 12 Months to Help Alleviate Strain on Personal Finances

Core Insights - A recent TransUnion survey indicates that many consumers are feeling financial strain from their auto and mortgage payments, prompting interest in refinancing as interest rates decline [1][3]. Consumer Sentiment on Mortgages - The survey, conducted with 1,002 recent auto loan customers and 1,025 mortgage loan customers, revealed that 80.1% of recent home buyers feel their mortgage payments are a financial strain and are considering refinancing within the next 12 months [2][4]. - Among recent home buyers, 70% identified more favorable loan terms as a key driver for refinancing, while 67% cited better interest rates and 61% mentioned cash-out refinancing as significant factors [5][6]. Consumer Sentiment on Auto Loans - Similar sentiments were found regarding auto loans, with 65% of respondents agreeing that their current auto loan payments strain their finances, and 63% indicating they would likely refinance if it could reduce their monthly payments [7][8]. - Specifically, 52% of respondents would consider refinancing if it could save them between $50 and$149 monthly [8]. Refinancing Trends - TransUnion data shows that credit unions hold a significant share of the refinancing market, with 67% of the refinance share in 2023, while banks account for 20% [10]. - The stability of these figures highlights a favorable consumer perception of credit unions when exploring refinancing options [10]. Recommendations for Lenders - Lenders are encouraged to actively market to potential refinance candidates, as many consumers are likely to explore refinancing options as interest rates fall [6][11].