Do you think there’s nothing to be gained from mortgage refinancing? Think again. With interest rates as low as 3.63, fully 81 percent of housing loans in late September were refinances. Another relatively new phenomenon in the finance market is the number of loans that have been refinanced two, three, or even four times.
Financial experts agree that most average buyers should consider refinancing if they spot an interest rate more than half a point lower than their existing rate.
This climate means than lenders who pursue refinancing clients are making a wise business move.
Getting Mortgage Refinance Leads
Aside from buying new leads, which can be expensive, or running large advertising campaigns which are always financially risky, there are some techniques you can use to maximize business from people who are already in your system.
The first thing you can do as part of your sales prospecting plan is to scour your marketing lists for aged mortgage refinance leads. Aged leads are leads with whom you had little or no contact at the time of purchase. Although they don’t convert as frequently as new leads, studies suggest that aged leads can remain viable for as long as 36 months.
Contact these would-be clients by email or direct mail, explain the benefits of refinancing now, and offer to meet with them to discuss whether or not refinancing would be a good financial decision for them.
Customer Relationship Management Is Vital
Aside from contacting new or aged leads, it’s also important to engage in active customer relationship management or CRM. Your sales prospecting plan should include following up with people who have financed or refinanced through your agency in the past. Former clients may not follow the housing news as carefully as you do, and they may not know that they could benefit financially from refinancing their mortgage.
The more diligent you are about CRM, the greater the chance that customers who worked with you before will think of you when they need financial advice or additional services such as refinancing.
Can It Last?
There is one thing to remember, though. Interest rates can only sink so low before they stabilize and slowly begin to rebound. You and your customers have a small window of time to ride the refinancing wave before the trend vanishes. So, get your sales people busy looking for refinancing clients now!