February 25, 2020 | By RGR Marketing Blog

Declining Rates Continue to Fuel the Refinance Market

buy Mortgage LeadsEvery new year tends to bring with it a sense of uncertainty in the real estate market. As one year ends and another begins, often questions arise as to what mortgage brokers and home buyers can expect to see happen over the next twelve months.

In 2019, historically low rates helped drive a strong refinance market, but what will happen in 2020? Will refinancing experience a slump, or will the market remain strong? If refinances make up a large portion of your closings, then knowing what to expect can certainly help you plan your first quarter strategy.

New Year, Same Trends for Mortgage…

One trend that almost every real estate expert can agree on is that interest rates should remain stable in the early part of 2020. As the year progresses, many analysts, including those at Fannie Mae, predict that the rates will drop even further, averaging as low as 3.6 percent in some cases. This is certainly good news for homeowners looking to save money.

With the fourth quarter of 2019 setting a strong pace for refinances, this is a trend that will most likely continue into January and throughout the first quarter of the new year. Of course, few things are as fickle as the real estate industry. While refinances should remain strong, there’s no guarantee that they will, so it’s always best to be prepared for every eventuality.

Finding Strong Refinancing Candidates

Part of being a trusted mortgage professional is having the ability to pair your clients with the products that can help them achieve their goals. This means that not every client who is interested in refinancing is going to be a good fit for it. Before selling your client a refinancing package, it’s best to make sure they’re an ideal candidate for it. Ask them:

  • How long do they plan on living in the house?
  • Would they benefit from having a lower mortgage payment or from paying their home off faster?
  • Do they expect any changes in their income or employment status in the near future?
  • Would they benefit from a cash-out refinance?
  • What is their main reason for wanting to refinance their mortgage?

While low interest rates will undoubtedly increase the number of refinance applications you process in 2020, the truth is that a homeowner should consider a number of other factors in addition to the interest rate before choosing to refinance.

First and foremost is whether the homeowner’s credit has improved or worsened since buying their home. Another factor to consider is whether reducing the loan from 20-years to 15-years will benefit the homeowner in any way.

Find Better Refinance Candidates With Quality Mortgage Leads From RGR Marketing

The new year will start off strong for mortgage brokers who are looking to increase their refinance closings. But the key to success is being able to find eligible candidates looking to save money on their mortgages. At RGR Marketing, we can help you reach your goals by providing you with high-quality mortgage leads. We have been helping mortgage companies boost their refinances for over 20 years and we can help your business, too.

If you’re looking for an affordable and effective way to increase your refinancing prospects, then contact RGR Marketing today. We can provide you with exclusive access to high-quality leads that can make a difference in your growth and success in 2020 and beyond.

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