Because of recent market movements, millions of homeowners could now benefit from refinancing their mortgages. The Fed dropped interest rates by a quarter percent on September 17, to try to protect the US economy from a potential slump. According to data from Black Knight in August 2019, 8.2 million borrowers could save money on their loans due to the drop in mortgage rates.
And there’s talks about another rate drop coming.
This means that you have an incredible opportunity to focus your marketing efforts on a very specific and valuable group of customers.
Most loan officers consider a borrower to be “Refinance Eligible,” if they’re able to lower their interest rates by at least 0.75%. With the current low interest rates, more and more homeowners fall into this category.
How do you market to refinance customers?
One of the most effective ways to stay top of mind for refinance customers is to help answer their questions. Here are the top Google searches related to refinance.
When people hear rates are going to drop or they just dropped, they want to know, “Should I refinance?” So, it’s no surprise that the search term “when is it worth it to refinance?” spiked in August 2019, and is now double what is was in October 2018.
So, can you answer these questions for your borrowers?
- When should I refinance?
- When the Federal Reserve lowers rates, what does that mean for me?
- What are rates right now?
- How much does it cost to refinance?
- Do I have to pull my credit again to refinance?
- How long does it take to do a refinance?
Take the uncertainty out of the refinance for your customers. They may think the process is really cumbersome, when it’s not. Maybe they think it’ll take forever, so they don’t reach out to you. The best form of marketing you can do in a refinance market is to answer your customers’ questions. This of course, can take on many forms.
Stay Top of Mind
The first step to maintaining a great relationship with past clients is by keeping in touch with them.
Once a client’s loan has closed, your customer service plan shouldn’t come to a grinding halt. It will take some extra time and effort, but investing in post-close marketing will pay off in spades. Staying top of mind for these customers is a sure way to earn their refinance business down the road.
Send a Thoughtful Gift
One of the ways that you can continue to delight customers even after they have their new home’s keys is through gifts and cards. There are many ways that you could approach this technique, such as sending holiday, loan anniversary, and birthday cards, or putting together small gift packages for certain past borrowers.
If you don’t have the time or resources to provide this service yourself, use a concierge program like Jungo’s that will automate the process for you. With one click of a button in Jungo’s CRM, you can send branded cards and gifts straight to your past customers door. Want to learn more about the Concierge packages? Click here.
Provide Valuable Information
Looking for a more digital option for keeping up with your clients? Placing your past borrowers on a drip marketing email campaign is a great way to stay at the forefront of their minds. One of the best ways to approach this method is to send them emails that provide value. For instance, you could send home DIY tips, or facts about the benefits of building your home’s equity. Not only will your customers love to learn more from you, they may even forward that email to interested friends and family.
Jungo’s automated marketing campaigns do the heavy lifting for you. With over 400 prewritten email templates, you can easily place customers on a variety of marketing campaigns. The Keeping in Touch campaign allows you to automatically send helpful emails to past customers, without even having to open your email account.
Share Mortgage Refinance Tips on Social Media
If you already have professional social media accounts, focus a few of your upcoming posts on educating your followers about refinancing. They will appreciate learning the ins-and-outs of how much it costs to refinance. You could also share how to know if they’re a good candidate to refinance, and other important factors to consider.
Remember, when you provide education to your social media audience, you become a trusted advisor. People may have heard that rates have dropped, so sharing what that really means for them will help you gain new clients.
If you don’t yet have a social media presence for your business, this is a great time to start! Don’t think you need to make it complicated. Instead, start with just one or two platforms and create professional profiles. Then, start posting helpful content that your customers and professional partners will love to see!
If you want to learn more about developing your online presence, check out our article, here!
Focus on Specific Clients
A more specific way to market to refinance eligible clients is to focus on the customers who are the best candidates for a refinance. There are a few ways you could approach deciding who falls into this category. Perhaps there’s a group of customers who expressed an interest to you about refinancing their mortgage. Or, if you want to get a bet more technical, you could determine exactly who needs a refinance the most.
Within your Jungo account, you could run a report that would help you see which customers to focus on. Try running a report with all clients whose loans closed and have an interest rate above a certain percentage point. This can help you forecast who would benefit the most from refinancing their mortgage. You can then market directly to them.
Once you find out who you should focus your marketing on, it’s time to get creative.
First, you could send a simple email to this group of contacts so that you stay top of mind for them. Remind them that you’re always here to answer any questions that they may have about their mortgage. If they express interest, you could then follow-up. Try a no-pressure, 15 minute phone call consultation to discuss their specific pricing options.
Another step you could take for marketing to refi eligible customers is to choose a few (or all, depending on your budget) that you think are most likely to refinance soon. Then, set them up on Jungo’s Concierge Program with a client for life package. They will receive 19 cards and 4 gifts over the course of three years, straight to their front door. With a click of a button, you’ll remind them exactly why they should bring their mortgage business back to you by staying top of mind.
Mortgage rates change, and so do rates of refinances. However, marketing to refinance customers is a great habit to apply to your business, as it can yield a valuable amount of volume. One of the best ways to focus your efforts on marketing to refinance customers is to stay top of mind. If you use a CRM, you have all the data you need right in front of you. You can then determine which of your past clients is most likely to want or need a refinance. Leverage this data to most efficiently market your services!