Are Digital Mortgages the Answer to Record Interest Rates?
Mortgage interest rates in the United States are at their highest levels in years. This is due to the record inflation from increases in demand post-pandemic as well as the crisis in Ukraine. The Fed voted to raise interest rates by 75 base points in June to match the high inflation levels.
Can digital mortgages be the answer to avoiding massive interest rates on your mortgage?
What is a digital mortgage and how does it work?
A digital mortgage is simply a mortgage that is applied for online. This is done through the digital pre-approval process. Straight-through processing allows for the loan pre-approval process to be fully automated. Fintech companies such as OnlineApplication design the programming for digital lenders.
Digital pre-approval is simple for both borrowers as well as lenders. The borrower will simply input their information into the program. Then the software will automatically match the borrowers credentials with potential mortgage options and interest rates. No manual labor is involved with this process.
So then, How can Digital Mortgages Save You Money?
To begin, the digital origination process is fully automated. This completely eliminates the need for labor as well as physical materials for the loan to be processed. If a lender is saving on labor costs, it is possible the customer may see savings as well by receiving a better mortgage offer.
The digital pre-approval process is also faster than the manual process. Straight-through processing allows for you to know much quicker what mortgages you qualify for. With inflation and interest rates at record highs, receiving an offer on a mortgage quickly is as important as ever. Inflation is rising at an extremely rapid pace, and everyday spent waiting for a mortgage application to be processed puts you at risk of higher interest rates or a worse loan offer.
To learn more about digital mortgage origination or any inquiries for our software, you can head to our contact form on our website: