Should Your Mortgage Clients Consider Refinancing in 2023?

Home | Our Blog | Should Your Mortgage Clients Consider Refinancing in 2023?

May 9, 2023 | By RGR Marketing Blog

Counseling Your Mortgage Clients on Refinancing This Year

Roughly 85% of American homeowners currently have mortgage rates locked in below 5%. With mortgage rates hovering around 7%, it’s no surprise that refinance clients are few and far between. In fact, according to the Mortgage Bankers Association (MBA), mortgage refinance applications are currently at their lowest levels since August 2000.

However, there are still some homeowners out there in certain situations that can make refinancing a viable, if not outright a good idea. In this post, you’ll learn what to tell your mortgage clients if they’re thinking about refinancing in 2023.

Where Are the Rates Heading in 2023?

While most industry experts are predicting the traditional 30-year, fixed-rate mortgage to drop to between 5% and 6% in 2023, where the rate will ultimately go this year is a guessing game. With inflation, unemployment, and buyer confidence all improving, there are signs that the rate will get back to more accommodating levels, but nothing is guaranteed.

In any case, even if the rate drops to 5% for fixed-rate mortgages, refinance rates almost always tend to trend slightly higher and this could price many homeowners out of the refinance market, especially those who locked in record low rates during the run of historical lows in previous years.

Who Might Want to Refinance a Mortgage in 2023?

Despite the grim outlook for the refinance market in 2023, some homeowners may still want to consider refinancing their mortgages this year. For instance, some homeowners may need to refinance out of necessity. They may need cash for big expenses, such as having a home improvement project completed, like adding solar to their homes, or for paying off sizable medical debt incurred during the Covid pandemic.

Meanwhile, there are also those homeowners who might want to refinance into adjustable-rate mortgages to take advantage of a lower rate to pay down the principal on a large loan. Adjustable-rate mortgage (ARM) loans have become increasingly popular this year because the rate for these loans is lower than that of a 30-year fixed mortgage, at least for the first five years or so, when the rate is fixed.

Likewise, those homeowners with current adjustable-rate mortgages (ARM) who are coming up on their adjustment period may want to try refinancing to secure a better term instead of having to deal with a sizeable balloon payment.

Besides those mentioned above, there are additional reasons why a homeowner might want to consider refinancing in 2023, and these can include:

Lower their monthly payment: Although most homeowners have current rates of 5% or lower, there remains plenty of homeowners whose existing rate is higher than current market rates. These homeowners may be interested in reducing their monthly payments by refinancing their loans.
Change their loan term: Many homeowners feel that 30 years is too long a time to pay on a house. These homeowners may be interested in paying off their homes faster by refinancing into a 15-year mortgage.
High-interest debt consolidation: Using a cash-out refinance to pay off high-interest credit card debt isn’t always recommended because it replaces a homeowner’s unsecured debt with secured debt but that doesn’t mean that some homeowners might not want to take advantage of the fact that refinancing could help them save a lot of money on interest in the long run.
Remove a spouse or co-signer: If a couple is getting a divorce or the homeowner bought their home with a co-signer and they want to remove the other’s name from the loan, then they will need to refinance the mortgage and take out a new loan.

Connect With Homeowners Who Are Actively Looking to Refinance in 2023

There is no single answer as to whether your mortgage clients should refinance in 2023 because each homeowner’s situation is unique. If you want to increase your refinances this year, then you should connect with homeowners who are actively looking to refinance.

So, how do you find them?

At RGR Marketing, our proprietary lead generation tools allow us to provide you with exclusive access to high-quality mortgage leads based on your unique demographics. So, if you are looking for refinance leads, we provide you with a curated list filled with prospects who have shown recent and increased interest in refinancing their mortgages.

RGR Marketing has more than 20 years of experience providing mortgage lenders with the mortgage leads they need to succeed. Unlike other lead gen firms, our leads are verified for accuracy and scrubbed to remove any duplicates, incomplete profiles, or invalid data.

Partner with RGR Marketing today and get connected with high-quality refinance prospects in your local area. Our leads can help boost your refinance closings in 2023.

Start making more
money today!

Get Started

Popular

Recent

5 Closing Methods to Help Your Solar Sales Team Succeed November 17
How Mortgage Brokers Can Address On-the-Fence Refinancing Clients October 16
Learn the Key Points for Marketing Window Replacement Services in Winter December 25

Contact Us

Get started with free* leads.

Call us at 310-540-8900

Don’t take our word for it—find out for yourself how good our leads are and what a difference working with us can make.
Call us at 310-540-8900 or fill out the form below and we’ll tell you how you can get high quality leads for free*.

I authorize ReallyGreatRate, Inc. to communicate with me via email.
* Get up to 10% free leads on your first order!

Counseling Your Mortgage Clients on Refinancing This Year

Where Are the Rates Heading in 2023?

Who Might Want to Refinance a Mortgage in 2023?

Connect With Homeowners Who Are Actively Looking to Refinance in 2023

Start making more
money today!

Search Categories

Latest from Twitter

Contact Us

Counseling Your Mortgage Clients on Refinancing This Year

Where Are the Rates Heading in 2023?

Who Might Want to Refinance a Mortgage in 2023?

Connect With Homeowners Who Are Actively Looking to Refinance in 2023

Start making more money today!

Search Categories

Tags

Tag Cloud

Latest from Twitter

Contact Us

Let’s connect on social media

Let's talk

Mortgage

Solar

Home Improvement

Start making more
money today!