The new tax laws cap the Mortgage Interest Deduction, limit the Property Tax Deduction and end the HELOC deductions. Because of this, Mortgage Marketers need to look for new strategies and select the right mortgage lead lists to generate response.
There are a lot of Americans who have Home Equity Lines of Credit. The new Tax code eliminates the deduction so targeting those Homeowners to refinance into straight Second Mortgages or to consolidate their HELOCs into a refinanced mortgage becomes an important strategy. The window for marketing to these people will be brief as they will all be looking for options sooner rather than later.
Mortgage Marketers should be targeting HELOC holders to Convert that Line of Credit or Consolidate their Loans.
Marketers can select by:
- Origination date
- Loan amount
- Geographic Area
This new list offers mortgage marketers a targeted, responsive group of prospects who need their services. Direct mail is the top marketing channel to reach them.
An article in National Mortgage professional highlighted a company in Georgia, Tagquest, about their recent direct mail campaign. Out of a 5,000 piece direct mailing, they realized a response rate of over 1 percent with final results of more than a 20 percent conversion rate into working loans that will close
This is what they said: “Even with the Internet and all of the technology today, direct mail still has its place, and it can offer a better return-on-investment (ROI) than most other forms of marketing/advertising … you just have to do it the right way.”