February 21, 2014 | By RGR Marketing Blog

The mortgage industry might be looking grim for the upcoming year, but mortgage refinance businesses have a prime opportunity. Even though interest rates are rising, we see opportunities to help you grow your business!

 

 

 

 

 

 

How Refinance Leads Help Grow Your Business

You can increase your company’s margins by targeting the types of leads you need: refinancing and second mortgages. By partnering with an effective lead generation firm, you gain access to a targeted list of people who are interested in refinancing. While it does require an investment, the return on your investment is substantial. For example, you buy 50 leads for as little as $500. The average refinance loan amount is $200,000. If your fee (in bps) is 100, you would earn $2,000 off each deal you make. Now the total amount you earn back would depend on your conversion percentage of those 50 leads. If you collaborate with a company that provides you with quality leads, you could get up to 5 percent conversions. Meaning you’ve earned over $5,000 for spending $500.

Don't Buy The Wrong Refinance Leads

Some homeowners are still locked into a higher rate from previous years and mortgage refinance firms can still gain access to quality refinance leads and boost their business during a downturn. You just have to be smart about where you source your leads.

If you’re going to buy leads for your business it’s important to understand your source. Does your lead provider want to provide you with the best possible leads at the best price? Do they want to help you learn how to close those leads? Are the leads delivered in real time, to give you the competitive edge your business needs?

Some lead providers will sell you unqualified or recycled leads, which will not generally result in sales for your business. If you want to grow your business you need the right leads from the right source and you just might keep booming while others are quickly busting.

Tips for Getting and Using Leads

Make sure you partner with a marketing firm that has years of experience in the lead generation industry and a reputation for delivering consistent, reliable leads to the mortgage industry.

Since interest rates are climbing, some homeowners are still trying to refinance before rates get too high. You should be talking to leads that are willing to buy and not waste time with excuses.

Once you have a list of leads, you need to use that list effectively. Our blog offers tons of tips on closing your leads. Here are a few top tips for success:

  • • Using the leads the second you get them. They’re hot when you get them, but can quickly cool. So act fast.
  • • Don’t "cherry pick" your leads. Contact every lead you get for the most ROI.
  • • Be available to your new lead list at all hours. If you receive leads at 8:00 pm you need to act on them then -- not wait until business opens.

The Future of Home Loans

As a refinance professional, you already know that rates have jumped up above 4% again and are continuing to increase. As this happens, consumers shy away from making that big purchase. In addition, lenders have made it more difficult for buyers to be approved for a loan, which means less new home loan applications in the works. Yet, they continue to be curious and fill out those interest forms and that is your opportunity to convince them that now still is a great time to buy a home with your help! We can connect you to these people that are still curious and hopeful about their homeownership dreams.

How has rising interest rates impacted your mortgage business?

 

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