Mortgage brokers need to become experts at generating their own refinance leads.
Leading mortgage authorities are predicting a drop in refinancing activity for the remainder of 2021. And, even with this drop, total originations are predicted to hit $3.3 trillion. According to the Mortgage Bankers Association, lenders originated a record $3.83 trillion in home loans in 2020. That amount was the highest in history.
Right now, with the 30-year mortgage rate near 2.97%, about 14.5 million Americans could lower still their monthly mortgage payments through refinancing. According to Black Knight, that is down from 18.7 million near the start of the year. This is when the interest rate reached a record low of 2.65%.
It’s good news for borrowers – not as much for Lenders.
Lenders will now be actively competing for retail business. In 2020, many homeowners were self-motivated to refinance. As the rates increase, there will be fewer homeowners voluntarily contacting mortgage brokers looking to refinance.
Earning a Share of the Refinance Business
Mortgage brokers who want a profitable end to 2021 will have to market. That’s the only way of generating exclusive refinance leads. As the rates continue to increase, homeowners are not going to waltz in your door. You need to get out there and reach out to them.
The top tactics for mortgage brokers looking to hit or increase their goals:
- Direct mail
- Pay Per Click advertising
- Inbound leads generated through SEO, social media
These are all tried and true marketing channels that have historically produced results for mortgage brokers. Each of them offers opportunity. But regardless of the medium you choose, you need a solid lead magnet to help you generate solid leads. After all, people aren’t going to give you their information for nothing.
Choosing the Right Lead Magnet
A good lead magnet will entice consumers to give you’re their contact information in exchange for something you are giving them. This way you’ll be able to market to these people over the long haul. Eventually, some of them will become clients.
In the marketing world, we also hear a lot about generating relevant content. Here are some options you can use as your Lead Magnet that also provide you with solid content opportunities
Energize Your Offer – Consider Free Checklists or Courses
Here some possible topics:
- Improving your credit
- Seasonal home maintenance
- Projects that improve your home’s value
- Saving for a down payment
- Documents you need to get a mortgage
If you decide that you want to provide these kinds of checklists, remember that your offerings may in the form of print, podcast or even a YouTube video.
Using Your Own Database
Mortgage brokers should maximize their own customer list. That means they need to make sure their data is clean and current. Your personal database is priceless. Anything you can do to enhance your data will be worth it. Your own list is a prime source for generating new refinance leads.
Consider asking for referrals. Hopefully, they’ve been happy with your service and will be happy to share your contact information with friends and family. You might want to set up a “thank-you-for-the-referral” campaign especially for your past customers. A gift card may be the perfect offer for this kind of promotion.
Develop Relationships with Annual Checkups
Offer your clients an “annual checkup”. This gives you a chance to speak to your closed customers each year and develop a relationship. Relationship building is the key to future business. Think Lifetime Value.
An Annual Checkup also gives you a chance to check on their progress. Who knows? Maybe after the review, you might suggest that they drop their mortgage insurance. Or, maybe you can offer them a better interest rate or cash out some money for home improvements.
This way, if there is a chance for them to save money on their mortgage and refinance, they will think of you first!