There’s a time to hold steady, a time to pull back, and a time to step up your game. For those of you working mortgage refinance leads, the time to go all in is now.
Mortgage refinancing has recently hit a frenzied peak. If you seize the opportunity, your growth could be huge. It’s all thanks to a combo of sagging interest rates, loosening credit, stale to modest wage growth, and volatile world economics.
The more interest rates plunge, the more borrowers come out of the woodwork in a mad rush to refinance — refinance volume is now at the highest level in over a year.
Yes, those interest rates are down and mortgage refi apps are up. Mortgage application volume was up more than 8% in mid-February, with refinance volume alone ballooning 16%. Meanwhile, conforming 30-year fixed-rate mortgage interest rates are down to 3.83% and jumbo loans are averaging 3.74%. For those prospects that have been waiting for the right time to refinance, many are deciding that time is now.
Cold Calling Sales Leads
For folks in the mortgage refinance lead business, it’s time to start cold calling those sales leads. Here’s why cold calling works in this situation.
You need to turn a cold call into a warm mortgage lead. You do that with information — information your lead needs to know to act, but can’t access or digest easily on his own:
- Current mortgage rates and how they compare to a few months ago.
- What the experts are saying about current rates and where they’re headed.
- Why other homeowners are choosing to refinance now.
As in all cold calling situations, it’s best to stick to questioning and listening to your lead. But you can also pepper your questions with facts about why now is the right time to refinance:
- “Were you aware interest rates have actually dropped since the Federal Reserve announced it planned to raise rates?”
Use your questions to find out what benefit will cause that lead to buy from you. Find out fear and doubts, their sales objections. Provide info packets with reputable sources for the leads you warm up and move into your pipeline.
Using the Aged Lead Strategy
Of all the times that aged leads are a great strategy, this situation is probably the best of those.
The rate brokers gave your aged lead 30 days ago is no more. It’s a completely new ballgame today in the refinance business. Rates are falling despite the fact the Fed has set its sights on boosting them.
The refinancing question is generally always a guessing game for homeowners. Should they take the interest rate and points offered today? Or, will they save thousands if they wait and rates drop even lower next month? A client’s final cost for other products — car insurance, life insurance, etc. — isn’t going to go down significantly (if at all) if they wait. But mortgage refinancing isn’t like most other financial products.
Those sales leads who asked for a quote last month or last fall may have gone with a rate offered at that time. Or like many shoppers, they may have been turned off by a flurry of sales calls from loan officers and brokerages. And that’s where your aged lead strategy comes in.
Buying Aged Mortgage Refi Leads
Aged leads, discounted leads that are 30 to 90 days old, are a great way to reach out to customers who may have been interested but decided not to refinance. Aged leads can give you an upper hand when it comes to both beating out the competition and getting the best return on your investment.
Did you 95% of leads are not pursued after the first week? Most loan officers and brokers are trying to strike while the iron is hot. Leads receive a flurry of calls, and for some, that attention is a turn off. With aged leads, you have an opportunity to sell in a more relaxed environment. You won’t always close the deal of course — some leads will have already refinanced, some will have decided to wait, move, or give up on the search. The leads you do close? The economics of aged leads make those worthwhile.
Consider this: while you may pay $6 or more per lead for a fresh mortgage refinance lead, you could save 75% to 90% buying older leads. Why buy these so-called “stale” leads? Because each aged lead represents a prospect who was, at some point, interested in refinancing. Many leads don’t buy because the timing and the rate just wasn’t right. But now that interest rates have “plunged” as Olick reports, they’re ready. It’s time to start calling and closing those refinance loans.
Thousands of searchable, high-quality aged mortgage refinance leads are available right now in The Aged Lead Store. You can make the most of this unique refi lead opportunity and get more for your money with aged leads today.