Marketing To Refi Prospects
Based on reports from MSN, there’s almost 20 million homeowners who are still eligible to refinance their homes.
The data from Black Knight, a real estate data aggregator, homeowners who fall into the guidelines just mentioned could end up paying roughly $290 a month less ($3,500 in savings every year) by refinancing to a lower interest rate.
As a result, mortgage companies and mortgage originators have to reach out to homeowners who are excellent candidates to refinance.If they don’t, those homeowners will probably work with a company that is doing so online and offline.
What marketing channels will you use to attract them?
More than 1.3 million homeowners put less than 20 percent down on their mortgage in last year. This is according to a report by the U.S. Mortgage Insurers (USMI) association. The number of low down payment mortgages backed by private mortgage insurance (PMI) increased by 22.9 percent in the same period. PMI is generally required on mortgages with less than 20 percent down.
In fact, 58 percent of agency mortgages had some type of mortgage insurance, according to the Urban Institute. The bulk of those home loans were insured by PMI (41 percent). The next highest groups were FHA (36 percent) and VA (23 percent). Mortgages with PMI have been on the rise since 2016.
How’s Your Visibility?
Homeowners are excited to refinance and save with record-low interest rates. The question is are you doing the most you can to have them apply with you?
You need to get your messages out now. Simply put, you need to get your tested marketing letters in the mail, send out emails, have refinance videos ready, and make sure you are promoting this on social media.
Top things to Do until end of 2020
Refinance Prospects – There are 18 million homeowners who are ideal candidates to refinance. The forecasts is these homeowners could collectively save $3.95 billion every month by restructuring their mortgage loan. Start advertising to them now – before your competitors do.
First Time Home Buyers – Try to use renter’s demographic data that finds your perfect prospect based on age, income, marital status, ethnicity, number of years at residence, credit model, and location. For this group low down payment, grants, and credit seem to be enticing points.
Renovation Loan Prospects – People are staying in their homes longer and taking out loans to renovate and remodel their homes. Therefore, many homeowners are making upgrades to their homes to age in place.
Target specific segments
Latinos – Based on data from the National Association of Latino Real Estate Professionals, Latinos were the only demographic group that grew its rate of home ownership for three straight years.
Are you aware that Latino Home ownership basically makes up about 75% of the net upward tick in home ownership? Like the influx of Chinese buyers in the west and Canada a decade ago, this is a market that should not be ignored.
Millennials – the biggest group of New Home Buyers, makes up one-third of 2019’s home buyers and they are reaching the optimal home buying age in their late 30s early 40’s.