Expert Tips to Offer Clients Looking to Refinance a Mortgage This Winter

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December 20, 2023 | By RGR Marketing Blog

Taking Care of Winter Refinance Clients This Winter

With interest rates hovering between 7% and 8%, the refinance business might not be as strong as loan officers would like, but that doesn’t mean that nobody will be refinancing this winter. The truth is that homeowners choose to refinance for any number of reasons and they do so at any time of year, so even though interest rates aren’t exactly ideal and with winter fast approaching, there’s always the possibility that you’ll find yourself processing a refinance soon.

That said, there are usually fewer refinance clients during the winter in any case, so if you want to be the lender that these prospects ultimately wind up choosing, then you will need to set yourself apart from the competition. One of the most effective ways to do this is to provide your clients with the tips and advice they need to make their winter refinance a success. Here are some of the things that you should be sharing with your refinance prospects this winter.

Help Them Understand the Financial Benefits and Risks of Refinancing

Whether a refinance makes financial sense or increases a homeowner’s risk is often dependent upon their reasons for refinancing. And so this means that part of your duties as a loan officer include helping your clients understand this.

The most beneficial reasons for refinancing involve any situation that can help increase the homeowner’s equity or assets. This can include reasons like securing a lower interest rate, shortening the terms of the loan, accessing equity to pay for home improvements, or using their equity to help pay for an investment property.

Then there’s the risky side of refinancing. For instance, if your client is choosing to refinance, so they can pay off their high interest credit card debt, then it is important that you inform them of the risks. By taking this approach to their debt management, your client will be replacing their unsecured debt with secured debt. In other words, should they be unable to meet their new higher monthly mortgage payments, they could find themselves at risk of having their home foreclosed on by the bank.

Help Them Understand the Costs of Refinancing

It might be surprising, but a lot of homeowners don’t realize that there are costs associated with refinancing a mortgage. More to the point, there are closing costs, just like there were when they got their original mortgage, and depending on the loan amount, those costs could be several thousands of dollars.

This is also important to know because should your prospect not be planning on staying in the home for at least five years after refinancing, then they will most likely lose money on the transaction. Or, if they choose to roll the closing costs into their new mortgage, then it will result in an even higher mortgage payment.

Help Them Understand Their Down Payment and Private Mortgage Insurance

One of the benefits of putting at least 20% down a home is that it eliminates the lender’s need to include private mortgage insurance in the homeowner’s monthly payment. Because a refinance provides a homeowner with a brand new loan, that same rule applies. So, if your client doesn’t put at least 20% down on their new loan, they will be required to pay for private mortgage insurance until they reach 20% equity in their home.

Help Them Understand All Their Refinance Options

There are two main types of refinances - a no cash-out refinance and a cash-out refinance. Part of being a great loan officer is helping your client get the best loan for their unique needs. This means having a good understanding of your client’s financial goals, so you can offer them the solutions they need to reach them.

Want More Refinance Clients This Winter?

Finding winter refinance clients might not be easy, but it can be made easier by purchasing mortgage leads. At RGR Marketing, we can provide your mortgage business with exclusive access to leads who have shown increased interest in refinancing their mortgages.

Our mortgage leads are scrubbed and verified, and curated just for you based on your unique target demographics. Don’t let winter’s lull in business give you the seasonal blues. Take action and purchase the leads you need to ring in the New Year with plenty of prospects. Partner with RGR Marketing today!

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Taking Care of Winter Refinance Clients This Winter

Help Them Understand the Financial Benefits and Risks of Refinancing

Help Them Understand the Costs of Refinancing

Help Them Understand Their Down Payment and Private Mortgage Insurance

Help Them Understand All Their Refinance Options

Want More Refinance Clients This Winter?

Start making more
money today!

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Taking Care of Winter Refinance Clients This Winter

Help Them Understand the Financial Benefits and Risks of Refinancing

Help Them Understand the Costs of Refinancing

Help Them Understand Their Down Payment and Private Mortgage Insurance

Help Them Understand All Their Refinance Options

Want More Refinance Clients This Winter?

Start making more money today!

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