What Mortgage Brokers Can Do When Interest Rates Rise and Prospects Exit the Re-Fi Market

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December 6, 2022 | By RGR Marketing Blog

With Higher Interest Rates Comes a Different Approach to Re-Fi's

For the most part, in 2022 mortgage interest rates rose faster and higher than most industry experts predicted. And while fluctuations are normal, there doesn’t seem to be any sign of things changing drastically the other way any time soon.

The problem with the rising rates, of course, is that this has left many refinance prospects with no other choice but to walk away from the market. Fortunately, there are some things that mortgage brokers can do to help reel these prospects back to the table.

Here are four tips that can help you avoid losing your refinance prospects whenever interest rates rise.

#1: Remind Your Prospects That Refinancing is a Long Game

A cash-out refinance is often looked at as a short-term financial solution, which is why rising interest rates are usually more than enough to scare prospects away. But one way you can help your prospects come to term with the higher rates is to remind them that refinancing is a long game, not a short one. Ultimately, the biggest benefits of refinancing won’t be experienced until later down the line.

As a mortgage broker, you can nurture your refinance prospects by crafting a positive long-term vision of the future instead of having them focus on the savings they will enjoy the following month. Remind them that even if they refinance into a higher rate than they originally wanted, a year’s worth of savings can be sizable enough to put toward something that will improve their financial health or personal worth even more. A good mortgage broker can quickly identify a prospect’s long-term goals and explain how refinancing can help them get there, even if it means accepting a higher interest rate.

#2: Bring Out the Data

Facts are a mortgage broker’s best friend. Here, nothing delivers the facts like historical data. If your prospect is thinking about walking away because of higher interest rates, show them in black and white why refinancing now will still provide them with powerful advantages.

For instance, show them how a cash-out refinance can help them consolidate and pay off their credit card debt. Even at a higher interest rate, that debt will now be at a far lower rate than what the credit card companies were charging, and this can provide a substantial savings over time. Or they can use the money to complete a home improvement project that will increase its market value. Sometimes, just doing the math will help your prospects gradually move past their fear of refinancing.

#3: Focus on Service

Mortgage brokers provide a service, so they are defined in large by the quality of that service. When interest rates rise, your number of prospects will likely dip, so use that time to build stronger, deeper relationships with those in your network. Focus on improving the quality of your service. This not only includes your customers, but also all the real estate professionals you work with.

#4: Roll Up Your Sleeves

The mortgage business isn’t for the faint of heart even when interest rates are low because competition is stiff, but when the rates rise, things can get extra competitive. This means you should expect to roll up your sleeves and prepare to work even hard than you usually do. You may even find that you have to work harder to earn less but earning a little less is better than the alternative.

Remember that the mortgage industry is cyclical in nature and while things might be tough now, they will eventually improve. So, do what you have to do to ensure that your company stays afloat.

RGR Marketing Has Refinance Leads That Can Help You Improve Your Sales

It can be frustrating when refinance prospects walk away from the table, but if you are working with the right refinancing mortgage leads, this won’t happen as often as you might think. At RGR Marketing, we specialize in providing mortgage brokers with exclusive access to the high-quality leads they need to fight back against rising interest rates. We have 20-plus years of experience working with mortgage professionals, so we know what makes for a hot lead.

When you partner with RGR Marketing, you get hyper-targeted leads that have been pre-scrubbed and verified for accuracy. So, contact us today. We can help you get the refinance prospects you need to succeed, even in a tighter market.

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With Higher Interest Rates Comes a Different Approach to Re-Fi's

#1: Remind Your Prospects That Refinancing is a Long Game

#2: Bring Out the Data

#3: Focus on Service

#4: Roll Up Your Sleeves

RGR Marketing Has Refinance Leads That Can Help You Improve Your Sales

Start making more
money today!

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With Higher Interest Rates Comes a Different Approach to Re-Fi's

#1: Remind Your Prospects That Refinancing is a Long Game

#2: Bring Out the Data

#3: Focus on Service

#4: Roll Up Your Sleeves

RGR Marketing Has Refinance Leads That Can Help You Improve Your Sales

Start making more money today!

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