Mortgage Marketing in Todays’ Economy

January 31st, 2022 by

Mortgage brokers need to get back on track in terms of marketing both refinance & purchase programs.

For mortgage brokers who have been used to people flocking to their doors, 2022 will be much different.  While it is true that 2022 may not have the same level of opportunity as 2020 and 2021, you still have a lot of options.

As interest rates increase, you need to get creative to keep your mortgage business flowing. That means you need to find the right prospects.

Balance Your Mortgage Marketing Portfolio

Traditionally, a balanced Mortgage Portfolio consisted of 65% Refinance and 35% Purchase. Your Mortgage Marketing Budget needs to reflect that. With interest rates so low for the past few years, many Mortgage Companies abandoned this approach. They focused entirely on the “Low Hanging Fruit” of the Refinance business. Now with interest rates ticking upward, it’s time to return to the traditional approach. You need to shift some of the focus to the Purchase Market.

When working the Purchase Market there are several programs that will make Home Ownership both affordable and desirable.

Most First Time Home Buyers will sell within 5 years. This means marketing ARMs with a low initial rate makes sense. Be ready to offer access to Down Payment Assistance programs. Also – don’t forget about  VA loans. By reaching out to Veterans who are still renting, this can be a slam dunk.

The Refinance Market still has many great opportunities for growth. We are seeing record levels of homeowner equity combined with record levels of Consumer Debt. That means that many homeowners will need to take advantage of cash-out refinances.

Over 11 million Homeowners Can Lower Their Mortgages Today

While interest rates have gone up, there are still around 11.2 million well-qualified homeowners who could lower their mortgage interest rate by at least 0.75 percent if they decided to refinance today. This is according to mortgage data company Black Knight. Most of these homeowners can average a savings of $279 per month. That’s a potential savings of $3,348 per year.  About 1.2 million of these homeowners could save up to $500 per month, for yearly savings of $6,000.

Although it might take a bit more effort, Savvy Mortgage Marketers can still look forward to a successful year.

 

 

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