Mortgage marketers know that the key to driving response is to focus on highly targeted segments and tailoring the message specifically to that segment.
Mortgage rates haven’t been this low since the week of February 1, 2018, nearly 14 months ago. The break that mortgage rate shoppers have been waiting for is finally here.
After sitting out most of 2018, home buyers and refinancing homeowners are re-entering the market due to 14-month-low rates and favorable programs – which means mortgage companies need to ramp up their marketing and focus on narrow, highly targeted groups of homeowners – to make their messaging more relevant and increase response.
We are seeing some new programs:
- The Freddie Mac Enhanced Relief Refinance, or FMERR. This loan allows homeowners to refinance into today’s lower rates even if they are underwater on their mortgage.
- The High LTV Refinance Option, or HLRO, is a similar program that permits refinances for underwater homeowners whose current loans are owned by Fannie Mae.
We are also seeing zero-down loans and a loosening of guidelines that are offering mortgages, allowing higher debt-to-income ratios and lower credit scores.
Has there been a better time to be shopping for a mortgage rate? Not in recent memory. But things might not stay this way for long – which means mortgage marketers need to strike while the iron is hot.
Creative Prospecting Idea #1
For Refinances – Conventional refinance rates and those for home purchases are still low despite recent increases. With adequate equity in the home, a conventional refinance can pay off any loan type, including an Alt-A, subprime, or high-PMI loan.
Under the new Freddie Mac Enhanced Relief Refinance, homeowners can refinance a single-family home at current market rates even if they have little to no equity or the property is upside-down.. If a home is worth $300,000 and the homeowner owes $310,000, they can still refinance with FMERR, as long as they meet other guidelines. In essence, Freddie Mac is eliminating loan-to-value maximums for this loan type, which means marketers can select a list without LTV and expand their possible prospect universe.