Rising home prices have given homeowners more equity than expected, leading to more refinancing options allowing borrowers to tap into that equity via Cash-Out programs. And with interest rates climbing, mortgage lenders should take advantage of the Cash-Out market to get more business, especially in the near term. Here are three things to keep in mind when marketing Cash-Out mortgages:
Cash-Out programs are aimed at helping homeowners address a very specific and often emotionally charged need in their life; such as getting out of debt, paying medical bills or addressing student loans. While these tend to be highly motivated consumers, it’s important to provide the homeowner with important information about the realities of Cash-Out refinancing including cost comparisons, statistics and other program details. In the age of consumer transparency, lenders should use financial education to empower clients with information to make smart choices. A transparent and informative approach to customer service and campaign materials will reap rewards for you every time.
Mortgage mailers or direct mail campaigns can help produce more customers and potentially a higher conversion rate for a smaller investment. Providing materials with digital and phone response options coupled with important details concerning the Cash-Out program will allow the consumer to review the material and respond once they’ve made a decision. Lenders should send direct mail pieces to customer groups that match their program’s demographic including gender, credit profile, income, age, job type, family size and home value.
Let’s face it, there are multiple ways to reach today’s refinance consumers. And while digital tools and informative mailers are key to the Cash-Out market, now more than ever lenders need a dependable, proven and high performing telemarketing partner delivering hot prospects ready to make a decision. Partnering with the right telemarketing provider is key because each agent should be trained to call on your company’s behalf and would represent you to promote your campaigns. Telemarketers should have customized scripts based on your target audience and the nuances of the Cash-Out program. What’s also great about live transfers is the ability to control the amount of hot leads received each day and what hours of the day telemarketers would deliver leads.
Remember, the market is changing and your approach should as well. Whatever you decide, make sure your marketing mix includes direct mail, financial education and live transfers. Rethinking your Cash-Out strategy in this market will help you yield more customers and ultimately win more business.
Best Rate Referrals has the tools you need to be maximize the Cash-Out market. Contact us today and find out how you can begin using our new platform, Mortgage Advisor™, to find the Cash-Out leads you need.