With the single most informational report week in recent history behind us, the dust begins to settle in on the fact that mortgage interest rates will continue lower and bring with them the same volatility we have dealt with the past few months. Without getting too technical, we have been experiencing a series of “trading ranges” that helps fuel this volatility, as well as the move lower. Since nobody ever knows until after it happens when and where the “bottom” will be, it does seem like a very real possibility that we could push toward the lowest rates on mortgage loans in history!
With rates going lower there will be a huge push into refinances. As a mortgage professional it is your job to keep your closed clients informed as to market conditions when the market presents them with an opportunity. It is also your job as a mortgage professional to provide accurate information to your client so they can make an informed choice! It is also your job to know all of those choices and present that information so the client can understand it and make the choices that serve them best!
The realities of our industry make so that we tend to forget the personal connection to the very people we are supposed to serve! I have gone through my objections to the use of email blasts and campaigns to generate refinance opportunities. I have also seen other originators talking solely about lower payments. Some have worked on debt consolidation, while others have talked about shortening the loan term. All of these are proper conversations, but you need to have ALL of these discussions as well as a few others. What if the best choice for that client is to do nothing right now, or to sell their current home and go buy the house they would really like to own? You have to have al lof those conversations, and it can’t be done easily or quickly by email!
The solution is very simple, pick up the phone and call your clients. Take ten minutes to discuss the options and their potential benefits from a lower rate market. You will find these calls very beneficial as well as productive. As I have said before, email is fine for documenting a conversation, but it can’t replace the quality of the contact you get from a simple phone call! That is the simple reality of refinances; presenting the opportunity and options personally!
Next week we will have a big announcement, so please stay connected! As always, if you have questions or comments, please contact us at [email protected]