Highlights
Mortgage rates are nearing a three-year high and rate-and-term refinancing has all but stalled. Borrowers still have equity and genuine reasons to tap it, from debt consolidation to home improvements and more. A cash-out refinance campaign opens not just one opportunity but three: a cash-out refinance right now, a HELOC for borrowers unwilling to give up a low first-mortgage rate, and a future refinance when rates eventually fall. One campaign, worked over time, becomes multiple conversations and multiple loans, even in a high-rate market.
As you may have heard, mortgage rates are sky-high. Thirty-year fixed rates are flirting with levels borrowers haven’t seen since 2023.
Refinancing activity has nosedived.
The rate-and-term playbook has stalled.
Borrowers are clinging to those low first-mortgage rates.
And yet, equity demand didn’t evaporate or disappear.
It moved.
Debt consolidation. Home improvements. Education costs. These significant life expenses don’t wait around for rates to plummet. Your borrowers still have equity, and real reasons to tap into it. Take debt consolidation, for instance. A borrower carrying high-interest credit-card balances can frequently reduce their total monthly obligations by folding that debt into a cash-out refinance. Even at today’s rates. The mortgage’s headline number goes up, but the math across their financial picture at large can still come out ahead. So, yes, the rate-and-term chatter may have stalled. But the cash-out conversation? That’s wide open. And as it so happens, it’s the perfect place to start.
One Campaign — Three Opportunities
In this high-rate market, a cash-out campaign opens not just one opportunity, but three.
Here’s how the trifecta comes together:
- The Cash-Out Conversation: A cash-out refinance can give your borrower immediate access to their equity, easing monthly pressures and providing peace of mind (and wallet). Take this first step right now and position yourself as the lender to know.
- The HELOC Hand-Off: If the borrower has a stellar first-mortgage rate that they’re unwilling to relinquish (as many do), allow the conversation to shift. A Home Equity Line of Credit (HELOC) allows customers to tap into their equity without interfering with that rate. And if you offer them, that keeps the ball in your court.
- The Future Refinance: They say, “What goes up must come down.” What we know for certain is that mortgage rates won’t remain fixed forever. And when they drop, the borrower you stayed connected with will be a prime candidate to refinance their cash-out loan or consolidate that HELOC. The bottom line? The relationship you fostered continues to pay off.
And take a look at what this does for your pipeline.
One targeted cash-out campaign, sent to one list of equity-accessible homeowners, can attract borrowers at three different stages. Those who are ready now, those who are better suited to a HELOC, and those who will be great candidates down the road. You’re not running three campaigns to chase three outcomes. You’re running one and letting it work continuously.
‘Not Now’ Doesn’t Mean ‘Not Interested’
A strategic cash-out campaign can kickstart a conversation that your rate-and-term efforts simply can’t touch right now. But it’s important to keep in mind: sometimes the answer is no. At least temporarily.
A borrower who doesn’t act today? They’re still a viable client.
Your job is to stay in touch and provide the mortgage expertise your entire business is built on. Fostering that relationship over time will keep you top of mind. When rates start to move, you will be the lender they remember. You will also have a reason to reconnect.
Camber Marketing Group can help you launch direct marketing campaigns designed to reach homeowners sitting on untapped equity. Reach out to our team today to learn more and get started.
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FAQs
Why would a customer refinance when rates are so high?
The reason usually isn’t the rate. It’s the need. A borrower consolidating high-interest debt or funding a major expense can still come out ahead monthly by tapping equity, even at today’s rates. The expense is the motivation, not the lower rate.
What’s the difference between a cash-out refinance and a HELOC?
A cash-out refinance replaces the borrower’s existing mortgage with a larger one and returns the difference in cash. This means giving up their current rate. A HELOC lets them borrow against their equity separately, leaving that first-mortgage rate untouched. In a high-rate market, that distinction is often what decides which path a homeowner chooses.
Why run a cash-out campaign instead of waiting for rates to drop?
Why sit idle while the need (and the borrower) is active now? A cash-out campaign starts the relationship today and positions you as the lender they remember when rates do fall. This turns one campaign into opportunities that unfold over time.
Does a single campaign really create more than one loan opportunity?
It definitely can. A single list of equity-rich homeowners can include borrowers ready for a cash-out now, others better suited to a HELOC, and some who become refinance candidates later. One campaign can work across all three.