March 13, 2024 | By RGR Marketing Blog

Taking Care of Mortgage Clients Who May Want to Refinance in 2024

buy Mortgage LeadsWith the U.S. economy at its healthiest since the Covid pandemic, life for many Americans is finally getting back to normal, or at least as close to normal as possible. And for some homeowners, this means getting back on track with their short- and long-term financial goals.

For years, one of the most effective ways to reach those goals was to refinance a high-interest mortgage loan into a more compatible home loan with a lower interest rate, or to access cash via the home’s equity by choosing a cash-out refinance. But over the last few years, the refinance dreams of thousands of homeowners have been mostly shelved due to the interest rate being so high.

In 2024, however, things are expected to finally change with a return to interest rates under 6% a realistic possibility. As a result, loan officers can probably expect to field more refinance requests this year. But should your mortgage clients refinance in 2024? Here’s what they will need to know before making their decisions.

What is Your Mortgage Client’s Reason for Refinancing?

Homeowners choose to refinance for many different reasons, but not all of them are ideal and some can even have a negative result on their finances. For this reason, understanding the reasons why your client wants to refinance will help you guide them in the right direction and to the type of mortgage refinance that will give them the results they’re looking for.

For instance, if your client wants to access their home’s equity using a cash-out refinance, then how they use the cash is totally up to them, but some ways are better than others. One of the best ways to use the cash is to use it to pay for home improvements because this will increase the home’s value, whereas using it to pay high interest credit card debt is much more risky.

This is because credit card debt is unsecured. Your client will be replacing their unsecured debt with secured debt, and their home is the security. This also returns their credit card balances to zero, and there’s always the risk that they will continue using their credit cards and getting in debt all over again, only this time trying to deal with everything with a larger mortgage payment.

How Low Does the Interest Rate Need to Be to See Significant Savings?

While the interest rates are expected to drop over the course of the year, there’s no telling how quickly they’ll fall or how low they’ll go. The general rule of thumb is that unless your client can secure an interest rate that is at least 1% lower than their current rate, then they should hold off if saving money is one of their reasons for refinancing.

Are They Ready to Refinance?

A lot of homeowners believe that simply having a mortgage and paying it on time is all they need to qualify for a refinance. The truth is, when a homeowner chooses to refinance, they have to go through all the same qualifying and approval processes they did when they got their current home loan. This means their credit history needs to be in good shape, their finances need to be in order, their employment history needs to be stable, they need to have money for closing, and more.

To help ensure that your clients get the lowest rate possible with their refinances, you will want to make sure that they are prepared for the process.

Connect with Mortgage Clients Looking to Refinance in 2024

Why wait for homeowners to come to you when you can purchase mortgage refinance leads consisting of homeowners who are already close to making their refinance decisions? At RGR Marketing, we specialize in providing mortgage companies and loan officers with highly targeted leads that have been scrubbed and verified for accuracy.

The leads we provide you with are homeowners who have already done a lot of their own research into refinancing. They have a better grasp of the market and are more aware of the risks and rewards that can come with refinancing. As a result, they require less nurturing and educating than the traditional cold lead. This translates into higher conversion rates, a lower cost per lead, and a higher ROI.

Partnering with RGR Marketing is the move you want to make if you want to see your refinance closings increase in 2024. Let us help you reach your full potential this year with better quality leads!

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