Mortgage Rates are at or below 4% currently. It will make sense for a lot of homeowners to refinance to enjoy a monthly savings and rates at historical lows have definitely created a flurry of new activity in the mortgage industry. At GenStar Marketing we are often asked what the best marketing strategy to generate new mortgage refinances is. That answer is tricky and will often depend upon budget, when sales lead are needed, what kind of lead management system is used and how much adaptability there is on the sales floor to working with and managing different types of leads and marketing.
Some of the mortgage groups working with us are experiencing amazing results with mortgage phone data. Outbound telemarketing campaigns are one of the cheapest ways to bring new sales. Because of the low rates, the environment to call homeowners is easier than when rates are high and there are few opportunities to offer loans that create savings and benefit. Right now, homeowners need all the help they can get and if there is a rate and savings to be had, they will jump on it. For this reason, firms working with our data are doing quite well. While everyone else is paying top dollar for direct mail, television, radio, internet and live transfer campaigns, some of our companies are generating high volumes of applications and growing their pipelines using only mortgage phone data.
The team at GenStar Marketing comes from an outbound telemarketing background so we have never been afraid to pick up the phone. We know that some groups absolutely hate it. To those folks, I would say that you could still hire telemarketers cheaply, hand them a script and let them generate live transfers in house. Data is working so well right now based on customer reports that we think it is too good of an opportunity to pass up. Mortgage data is the cheapest way to generate new loans and the historical low interest rates give loan officers and telemarketers the perfect reason to call. Mortgage originator and sales people always do better when there is a reason that justifies the call. Trying to lower families’ monthly rates and payments in a market where they could use the help is a good motivator to mortgage originators and should make it easier to make the call.
Nobody truly knows what interest rates will do. We all can expect that mortgage companies will blow this opportunity up and milk it until the opportunity shrinks and disappears. This is an environment where those that take advantage of this opportunity now will have a good run of profitability and others will react late and miss the boat. Right now people are hammering the phone and cold calling modeled mortgage data tailored to give loan officers a chance to help families refinance to better terms. We will help you model the data correctly and all you will have to do is make sure your staff is scripted and working the phones. If you wanted to lower your costs per new loan sale, today’s interest rate environment and modeled mortgage data will allow you to do just that. In today’s economy, does anyone have a problem with higher profitability? We at GenStar Marketing didn’t think so!