Mortgage marketers looking for new business should consider our new Cash-Out Refinance Marketing List.
This new marketing list lets mortgage brokers reach homeowners who are looking to pay off their old mortgage and keep some extra cash at the same time.
Cash-out refinances are surging in popularity jumping 42% in 2020 compared to 2019. This has been fueled by rising home prices combined with lower mortgage rates and the need for ready cash.
A cash-out refinancing enables homeowners to trade the equity in their homes for a lump sum of cash. In this case, homeowners pay off their old mortgage with a new one, and keep the extra cash that’s left over. Last year that averaged about $50,000 per transaction.
Now that Cash-Out Refinances have become an important strategy for today’s homeowner, mortgage companies are searching for the right prospects to market these loans.
Sophisticated Variables Get Results
Dataman Group’s new Cash-Out Refinance Marketing List incorporates many variables, including estimated equity in the home, revolving debt, presence of children, length of residence, homeowner age and income.
Experts say that the current record low mortgage rates are one reason for the rise in cash-out refis. With mortgage rates so low, it’s possible to obtain a nice lump sum of cash and also organize cheaper repayments with the new mortgage. Meanwhile, home equity has been on the rise. In many areas, home values have increased by double-digits in the last year.
According to Daryl Fairweather, chief economist at real estate brokerage Redfin Corp., many homeowners are taking advantage of the low rates to afford larger homes, second homes or spend the equity on home renovations. Some borrowers chose not to take out extra cash. In that case, they saw an average savings of $200 on their monthly mortgage payment. This kind of savings can really improve a homeowner’s monthly household cash flow.