"With projections exceeding $60 billion in originations for 2025, second liens have moved from a niche product to a mainstream financing tool for both homeowners and investors. U.S. homeowners collectively hold $35 trillion in home equity, and roughly 85% are locked into first-lien rates below 5%, creating strong demand for alternatives to traditional refinancing. According to Tom Davis, Chief Sales Officer at Deephaven, this surge reflects more than favorable market conditions; it marks a strategic shift in how lenders can serve borrowers."
"As consumers look to manage higher costs and debt, second liens offer a sustainable path for lenders ready to educate and lead. The average U.S. home is now 40 to 50 years old, prompting many owners to renovate rather than move. Meanwhile, consumer debt continues to climbover $1 trillion in credit card debt and nearly $3.5 trillion in auto and student loan debt combined. In this environment, second liens help homeowners consolidate debt, improve cash flow, and fund home improvements without disturbing their first mortgage."
Second liens are entering a growth cycle with projections exceeding $60 billion in originations for 2025 and shifting into mainstream use by homeowners and investors. U.S. homeowners hold about $35 trillion in equity while roughly 85% have first-lien rates below 5%, limiting refinancing demand. Second liens preserve low first-mortgage rates, provide liquidity for renovations and debt consolidation, and help originators re-engage customers. The average U.S. home is 40–50 years old, increasing renovation needs. Consumer debt pressures include over $1 trillion in credit card debt and nearly $3.5 trillion in auto and student loans. Mortgage rates projected above 6% through 2027 sustain second-lien demand.
Read at www.housingwire.com
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