Skip to main content

Closing Times for Millennials’ Mortgages Becomes Faster

Phil Hall
Apr 06, 2017
Millennials are not known to sit around and wait for things to happen

Millennials are not known to sit around and wait for things to happen, and that need for speed appears to extend to their home loan originations.
 
The closing time for the mortgages of Millennial borrowers decreased to 44 days, the shortest average time to close since March 2016, according to new data from Ellie Mae.
 
The average time to close a purchase loan for Millennials decreased from 46 days in January to 42 days in February, while time to close a refinance loan also decreased to 52 days in February, down from 58 days the month prior. The average time to close FHA loans decreased from 47 days in January to 43 days in February, while the average time to close VA loans took a steep drop from 57 days to 41 days.
 
Home purchases accounted for 86 percent of all closed loans from Millennials in February, a slight uptick from 84 percent in January, while refinances fell two percentage points to 14 percent of all loans to Millennial borrowers. Share of conventional loans remained unchanged from January to February at 61 percent of loans, while FHA loans increased to 36 percent in February, up from 35 percent the month prior.
 
However, FICO scores across all loan types dipped in February to an average of 723, down from 724 in January and their peak of 726 from August through October 2016. For purchases, the average FICO score was 747 for a conventional loan, 690 for an FHA loan and 745 for a VA loan.
 
“Purchase loans are increasing, indicating that Millennials are continuing to enter the first-time homebuyer market,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “In addition, we saw time to close decrease from 49 days in January to 44 days in February, which indicates that our lenders are seeing more efficiency as they embrace mortgage automation.”

 
Published
Apr 06, 2017
UWM Adds 'Control Your Price' To 'Game On' Pricing

New program provides 125 basis points in price enhancements for loan orignators.

Industry News
Jan 11, 2023
Rocket Pro TPO Relieves Brokers Of Credit Fee Burden

Will provided free credit reports to brokers if they get their loan closed with the Detroit lender.

Industry News
Jan 10, 2023
Former Employees Sue Rocket Mortgage Over OT Pay

Claim company failed to properly calculate & pay OT for working beyond 40 hours a week.

Operations
Jan 09, 2023
Judge Grants UWM Partial Win In Ultimatum Lawsuit

AML’s declaration that the ultimatum violated antitrust law survived.

Industry News
Jan 04, 2023
A&D Mortgage Launches Temporary Rate Buydowns

Offering 3-2-1 and 2-1 buydown options.

Industry News
Jan 04, 2023
Zillow: 2M Homes No Longer Require A Jumbo Loan

This is the result of FHA's update to the baseline conforming loan limit in high-cost areas topping $1 million.

Industry News
Jan 04, 2023