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Falling Mortgage Rates: What to Know If You’re an LO

The average U.S. rate for a 30-year fixed mortgage has dropped to the lowest it has ever been since 2017, making many existing homeowners eligible for a refinance.

Give me some perspective.

From hitting a two-year low on rates, Black Knight and Freddie Mac claim that almost 6.8 million U.S. citizens are eligible for a refinance (based on a 0.75% threshold) off their current mortgage rate.

What are the perks of helping your customer refinance?

Refinance applications are currently leading the charge, strengthening profitability for many lenders and decreasing mortgage payments for current homeowners in their pipeline.  You can even help new and current customers determine their savings rate by using this mortgage rate calculator.

So, what does all of this mean?

As a loan originator, this means that the time to advertise for a refinance is, you guessed it, now, especially since consumer demand and profitability outlooks remain high. It would be in your best “interest” (pun intended) to alert your customers to these low mortgage rates. The “average” homeowner probably doesn’t keep track of the housing market on a daily basis and will most likely miss this great financial move, so make sure you’re helping your eligible customers become aware of these money-saving possibilities!

Here’s how you can help:

  • Identify your audience
    Segment your refinance prospects from your regular homebuyers by looking at your pipeline data and target them with personalized communications that map out how much they could save by refinancing.
  • Invest in content marketing
    Start building consumer brand awareness for you and your branch and nurture your refinance prospects by providing them informative content in a way that they will understand. This can include, refinance checklists, how to consolidate debt, how to net a lower monthly payment and what a refinance can help them accomplish.
  • Leverage email marketing
    Email remains one of the most cost-effective methods of targeting your defined audience. It provides a real-time and relevant avenue and equips your customer with content that matters to them. Watching which links a customer clicks on your email(s) can also help you define how “hot” the lead is and can help gauge how far along the customer is in their refinance journey.

Contact a Loan Originator Today!