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According to the Federal Reserve, the amount of consumer outstanding debt now exceeds the pre-2008 crisis levels. That means consumers owe more money today than they did back in 2008.
The difference is in the makeup of that debt. Today, consumers owe more in combined non-mortgage debt than they do in home financing. Not surprisingly, student loans lead the pack.
In reality, after adjusting for inflation and population growth, the per capita debt is down. That’s good news. More good news is that homeowners, who weathered the storm, now have more home equity than ever before.
That translates into more opportunities for lenders to offer refinancing to homeowners to convert some of the non-mortgage debt into debt secured by the home.
With uncertainty being created by the current political climate, rates may remain low a little while longer. Now, may be a great time to market to parents debt consolidation refi’s to pay off their kid’s student loans and maybe other some other debts.
This can be done in lieu of a gift needed to help the kid’s buy a home. Helps the children, helps the parents (get the kids out and on their own), helps the economy, and helps lenders. Now, that’s a whole lotta help.
It looks as though we may get yet another bite at the refinance apple. I think there’s still a little left.
