Refinances are back in play again and I just wanted to take the time to share with you what I like to coach my people to do. I call it “The Three Step Refinance Opportunity”. It is a simple way to go through your database and generate opportunities by sharing the benefits of lower interest rates. Notice I said sharing the benefits of lower interest rates, NOT the benefits of refinancing!
Sure, you could get in front of people and just share the benefits of refinancing, and I am sure you would find a good number of people who would see the benefit and do the deal. However, to do that would not be sharing the whole story. In fact, it would eliminate a large portion of the total opportunity available to us with lower rates. The key other opportunity is selling the current home and buying the “Forever Home”, remember “The Forever Home Strategy®” we have talked about in the past? Well, now is the time to engage this strategy when you call to share the story of lower interest rates.
The three steps to this process are:
- Identify your people with interest rates above 4%, or been in their home for five or more years, or have an adjustable rate loan product.
- Prepare your talking points to not only explain the current market conditions, but to share the possibility that these conditions could now benefit them in a big way.
- Once they share their interest, work the scenarios that show not only the benefits of refinancing, but the benefit of moving into their “Forever Home” while the cost of money is this low!
There are two distinct opportunities for current homeowners. One is to reduce the costs of their current home. The other is to reduce the long-term costs of their NEXT home. Think about it; are rates likely going higher or lower in the long term? Is the cost of their next home likely to be higher or lower in months or years to come? I think we can agree that interest rates are likely going to be higher in the future, as well as the cost of their next property! So why wait?
Now is the time to follow the steps. Sort your database by interest rate or by age of the loan. Obviously the higher the rate and the older the loan you want toward the top of your list. Arrange them in groups of 25. The reason for this is it makes it simple to get through a large number of calls and stay fresh with it if you break it up into more manageable groups.
Prepare a generic video explaining in simple terms that current market conditions have interest rates at all time low levels and that there may be a significant opportunity for them to benefit from these current conditions. Be very generic. Trying to get too specific here can turn some people off to your message. So just relate that current market conditions have created opportunities for homeowners to save money and/or reduce future housing costs.
Make your phone calls and share the story. If they are interested, put the deal together and email them a specific Mortgage Coach Total Cost Analysis® on their specific transaction possibilities. If they aren’t interested, just email them the generic video and thank them for their time and ask them to share the video with anyone they know that might need to save money on their housing costs.
Remember when you are talking to the client to be sure to ask about their “Forever Home”! If they don’t see the option of selling and buying as just as beneficial as refinancing, they might miss a golden opportunity! It is a very important part of the conversation; so don’t forget to talk about it. Besides, wouldn’t it be nice to have a few people to turn over to your referral partners who want to sell their home and buy a new one?
Make it fun for you, your team, and maybe your entire office. Why not set up a call night? Bring in some pizzas and make calls for an hour or two? See how many conversations you can have, appointments set up, or even applications taken? Why not work really hard for the next week or so to see if everyone can make calls and find five refinances and two potential movers in the next eight days? That would be a total of seven transactions for you, and two listings and four sales for your referral partners! Think about it. If you did a few hours of work and generated seven transactions for yourself, what is that dollar value? What is the value of the purchase and sale transactions to your referral partners?
You have a chance to share an opportunity with your clients and referral partners. Don’t waste time get moving! Celebrate Independence Day by creating a little financial independence! Go get the work done and go share the information about the opportunity at hand!