With mortgage rates plummeting so quickly, millions of homeowners could benefit from refinancing their home. The average rate on the 30-year fixed mortgage fell to a record low of 3.29%, Freddie Mac reported this week. That’s down from the previous low of 3.31% in November 2012, in the wake of the financial crisis.
This means that approximately 13 million borrowers can now save money by refinancing their home loans and lowering their current rates by at least 75 basis points.That is a record number of potential refinance candidates and an increase of 1.7 million eligible borrowers in just the last week and a 60% jump year to date. That is the highest number of potential refinance candidates on record.1 This is a tremendous opportunity for Loan Officers to close more loans!
What is the best way to reach these refi-ready borrowers? First, mining a fresh, well targeted database of lead prospects that are ideal candidates to receive your offer, then delivering a personalized mail piece via direct mail to each borrower you’re targeting is the most effective and profitable ways to reach out to new and existing customers.
Communicating with potentially new customer is an exciting opportunity, but what about your existing customers and members who are ready to refinance their home loans? Acquiring customers will always be a vital aspect in the growth and continued profitability of any organization. But retaining customers has a major impact on the bottom line due to its high return on investment, relatively low cost and long-term benefits. This makes customer retention most important in this refi-ready atmosphere. With so many refinance opportunities presenting themselves, you won’t be the only lender reaching out to this group of eligible borrowers, many of whom are your own customers and members you previously worked so hard to secure the loans they’re going to refinance. Implementing a strong customer and member retention program along with your acquisition marketing strategy is a must.
Acquiring customers will always be a vital aspect in the growth and continued profitability of any organization. But retaining customers has a major impact on the bottom line due to its high return on investment, relatively low cost and long-term benefits. This makes client retention most important in this refi-ready atmosphere. With so many refinance opportunities presenting themselves, you won’t be the only lender reaching out to this group of eligible borrowers.
When you think of how much you invest to create a new customer, the value of retaining that customer is significant. The probability of selling to an existing customer is 60-70% more likely than selling to a new prospect. Camber Marketing Group’s Portfolio Monitoring Program helps you stay engaged with your customers by notifying you when a customer or member starts looking for a new mortgage elsewhere. Within 24 hours of a credit inquiry, you’ll have their information and a retention offer will be mailed on your behalf. This gives you the opportunity to reach them first and make them a refinance offer they can’t refuse.