Mortgage marketers – are you do mailings for your HELOC business? Marketers in the Mortgage Industry were huge direct mail players a few years ago. We all know the history – the bottom dropped out, many mortgage companies went belly-up and the mortgage direct mail business from the mortgage industry all but disappeared.
It does appear that the Mortgage Industry may be headed for an upswing and will once again be direct mailing to Equity Loan Prospects.
Many U.S. homeowners finally have a good chunk of equity in their homes again. And they are ready to put it to use.
During the first quarter, the number of new home-equity lines of credit (HELOC) rose to 230,200. This is a nine percent increase from the year before, according to credit reporting company Equifax. With the average HELOC growing to $100,207, those loans meant that homeowners had the potential to use up to $23.4 billion. This is a level not seen in over six years, since 2008.
HELOCs were very popular during the housing boom when everyone had plenty of equity to tap. However, after the mortgage meltdown new loans all but disappeared. Yet now after home prices jumped dramatically last year and continue to rise, many lenders are willing to increase their home equity volume again.
Historically low mortgage interest rates are aiding the pick-up in HELOCs,. The average rate fell to 5.01 percent in June, which is a decrease from 5.16 percent the previous year. This data is according to mortgage data website HSH.com. This is great proof that mortgage marketers should be mailing for their HELOC business right now.
A little good news can go a long way.