When interest rates start falling, opportunities for mortgage refinancing deals abound.
Yet, success in this space doesn’t come automatically. To reap the benefits, you need to be extremely efficient about marketing, prospecting, and presenting your solution.
You also need to be smart about differentiating yourself from the competition – even for your own clients.
The process starts by adopting the best possible contact and sales management technology (<cough> for mortgage salespeople, it’s BNTouch <cough>). The right CRM platform fully integrates contact management with mortgage refinance automation software and compliance in a single platform. So you can spend your time using your technology, not fighting it.
But it doesn’t stop with technology. Technology is only as good as the agent using it.
So this article will also talk about the many different ways you can differentiate yourself from the competition, and show that you represent a better value than your competitors pushing rates/payments alone.
Here’s how to dominate the refinance market and leave your competitors behind.
1. Prospecting is the Foundation
Refinance deals hinge on timing. Your first job is to identify potential clients who can benefit from refinancing, and then get in front of them before your competitors do. Here’s how to sharpen your prospecting:
Nurture Your Warm Contacts.
Your database is your goldmine. A falling interest rate environment means many of your past clients, who locked in higher rates a few years ago, could benefit from refinancing. You have a natural advantage against competitors when it comes to marketing to these people: They already know you can and do deliver the goods. They know you can execute, and make good on your promises. They’re comfortable dealing with you. And if you’ve done a good job staying in touch, they’d rather work with you than a stranger.
Marketing to existing clients is also much more cost-effective: According to HousingWire, it costs up to five to seven times more to acquire a new mortgage customer than it does to retain an existing one.
Invest in an Automated Refinancing Process
When it comes to marketing refi ideas to your existing clients, list segmentation is critical.
This is why it’s important to use a CRM platform designed specifically for mortgage sales, and mortgage refinancing in particular, such as BNTouch.
With BNTouch, you can use your CRM to quickly segment your database by interest rate, mortgage origination date, and loan type.
Tip: First, focus on clients with adjustable-rate mortgages (ARMs), as they are particularly sensitive to rate fluctuations. You can lead with a question like “Hey, did you realize rates have been falling? Right now you’ve got an adjustable, which will hurt you when rates go back up. Now that rates are down, would you like to lock in a good fixed rate?
Then shut up! Wait for them to say “yes!”
If you’re using the BNTouch CRM the system’s built-in real-time interest rate tracking can automate some of this work for you, targeting clients whose rates are now higher than current market offerings. The CRM system can generate mortgage refinance alerts for you automatically. So you can be confident that you can help just about everyone you reach out to.
Use Market Data to Inform Your Outreach
In a falling rate environment, data is your friend. BN Touch helps you regularly track rate changes and quickly identify when there’s a significant drop that makes refinancing compelling for certain clients.
Tools like BNTouch allow you to pull in real-time rate updates and set automated alerts for when a client’s current rate exceeds the market average by a preset threshold. This allows you to craft timely, personalized outreach that shows you’re paying attention to their needs.
Build Partnerships with Real Estate Agents and Financial Planners
Refinancing is often discussed alongside other financial goals, so developing relationships with real estate agents and financial planners is crucial. They can alert you to clients who are considering remodeling, downsizing, or need to lower their monthly expenses for other financial reasons. Offer to be their go-to resource when refinancing comes up in client conversations.
This is where solid networking skills come in very handy. Take every opportunity you can to attend industry events where these allied professionals gather. Go to their workshops and seminars and real estate club meetings.
Don’t expect referrals at the beginning. Give twice as much as you get. Contribute generously, so that you are a welcome attendee. Eventually, your patience will be rewarded tenfold.
Host Webinars and Educational Events
Refinancing is a financial decision many homeowners are unsure about. Hosting webinars or in-person educational events on “How to Save Thousands By Refinancing Your Mortgage” gives you a chance to connect with multiple prospects at once. It’s also a great way to set yourself up as a subject matter expert.
Not an expert yet? Rookies should absolutely be doing joint seminars like this with veterans. You do all the legwork. Then bring in the veteran and let them help you close. Watch and learn from the old pros. You’ll become an expert very quickly!
Make it clear how your expertise and mortgage solutions can help them take advantage of lower rates. By addressing common concerns and questions upfront, you build trust and create a natural bridge to the next steps.
2. Craft a Compelling Presentation for Refinancing
Once you’ve got a prospect interested, you need to present the refinancing opportunity in a way that clearly outlines the benefits and addresses potential objections.
Focus on Savings, But Customize the Pitch
Every client’s financial situation is different, so your presentation needs to be tailored to their specific needs. Use your mortgage CRM to gather detailed information about the client’s current mortgage and financial goals.
Sure, you want to present the exact monthly savings they can expect from refinancing. But that’s not enough. If all you talk about are the monthly savings from a lower mortgage payment and nothing else, you become a commodity. You’ll always lose to the lowest bidder, and you’ll squeeze all the profit margin out of your products.
Instead, be prepared to go deeper. Present yourself as a trusted expert and consultant who is an ace at helping your customers solve specific financial problems.
Sometimes it really is about maximizing the monthly savings. Other times it’s about setting your client up for future transactions by helping them reduce DTI or build up equity faster. Sometimes it’s about protecting wealth against trial lawyers by helping your client build up more equity faster, so it receives bankruptcy protection against a future lawsuit depending on your state.
Sometimes it’s about lowering their payments on their mortgage to free more money up for other investments, such as a Roth IRA or 401(k), or annuities. This can be a smart move if they think they can get a greater return in stocks than they would pay in home mortgage interest. And since most home mortgage interest and all investment interest is tax-deductible, this is probably a pretty safe bet!
Or their real problem could be they need a portfolio loan across several investment properties. Or they need a hard money loan to finish a flip, or tide them over until rates decline even further. Every borrower is different.
Ask open-ended questions designed to bring out these hidden problems. Then, use everything in your tool kit to help them solve their problems.
By asking open-ended questions, and focusing on presenting personalized solutions that help solve your prospects’s specific challenges, you will set yourself apart from your competitors, who may well not even be pushing the right products.
You’ll leave them in the dust.
Give Them OPTIONS.
People like choices. It’s empowering.
Now, clients often hesitate to refinance because they’re unsure if they’re getting the best deal. They “want to think about it.”
To prevent this, present a clear, side-by-side comparison of several loan options. BNTouch allows you to create custom presentations that help your prospects visualize these options at a glance––making it easy for the client to see the potential benefits of switching.
Again this level of clarity can give you an edge over competitors who present less information or do so in a confusing way.
Address Objections Head-On
Be prepared to address the most common objections early in your presentation. These often include concerns about closing costs, the length of time to recoup those costs, or worries about resetting the loan term to 30 years. Have data on hand that shows how quickly they can break even on the costs of refinancing.
Or show alternative options, such as refinancing to a shorter loan term.
Some people want to pay off their mortgages as quickly as possible. Even if that’s not the mathematically optimal solution once you take opportunity cost into account, it’s often the emotionally optimal solution for people.
When that’s the case, don’t fight it. Find a refinance option that can shorten the loan term, help them build up more equity faster, and give them what they want!
(If the payments prove too high after a while, you set yourself up favorably for another refinance down the road. They won’t have too much trouble qualifying, since they’ll probably have equity by that point).
Make it Easy by Using Digital Tools
Today’s homeowners expect convenience.
Mortgage sales professionals who streamline the refinancing process will close more deals. Use your CRM’s digital tools to pre-fill applications, send documents for e-signature, and track the loan’s progress in real-time.
BNTouch offers a client portal that keeps all parties informed and reduces the back-and-forth correspondence. Clients appreciate the ease, and you’ll spend less time chasing documents and more time closing deals.
Your clients will also benefit from automating client communication during refinancing. The automated emails and text alerts they will receive during the process means less uncertainty, and less stress for both parties.
Your customers will be happier, too. Instead of waiting for you to return phone calls telling them what their loan status is (which isn’t easy when you’re busy presenting and closing deals!), your clients can simply log on the portal anytime, day or night, and get an immediate up-to-the-minute update on their loan application or funding status.
Happy clients make it much easier to get referrals. And over time, happy clients mean more repeat business when they buy investment properties or second homes.
3. Closing More Refinancing Deals
Closing requires urgency and confidence. You’ve gotten your client to see the benefits, now it’s about guiding them to the finish line.
Create a Sense of Urgency
In a falling interest rate environment, clients often want to “wait and see” if rates drop even further. While you don’t want to rush them, you need to create a sense of urgency. Explain that rates are unpredictable and a small uptick could wipe out potential savings. Share historical data that shows how waiting for the absolute lowest rate often backfires.
Use Clear Calls to Action
The simpler your next steps are, the more likely the client will take action. At the end of your presentation, make sure your call to action is clear: “Let’s lock in today’s rate and start saving.” Use digital tools to immediately generate a rate lock and send it to the client for signature.
Follow Up with Precision
Follow-up is key, especially when clients are on the fence.
But too many agents leave business on the table because they aren’t organized and disciplined about their follow-up.
If a prospect says “give me a week,” you can say, “great! I’ll follow up with you then. If it’s clear you’re going to benefit from it, and it makes financial sense for you, let’s make it happen! Same time a week from now work for you?”
Then schedule that call in your CRM so you won’t forget about it.
Again this is where a mortgage-specific CRM tool like BNTouch comes in handy: BNTouch makes it a snap to implement a mortgage refinance automation follow up strategy:
Schedule follow-up emails that include personalized rate updates, which can nudge them toward action. Additionally, keep a record of their concerns or objections and address them in each follow-up.
Leverage Testimonials and Case Studies
Clients who have successfully refinanced with you are your best marketing tool. Ask past clients for testimonials and, with their permission, create case studies that highlight the savings they experienced. Share these in follow-up emails, presentations, and social media. BNTouch’s CRM allows you to store and send these testimonials easily, showcasing your ability to deliver real results.
4. Differentiate Yourself from Competitors
In a competitive refinance market, it’s critical to set yourself apart. Many mortgage professionals will simply rely on quoting low rates. But even a robot can do that. That’s commodity selling, and you don’t want to fall into that trap.
Instead, you want to come across as an expert who charges fees because you’re more than worth the money!
When interest rates start falling, differentiation is crucial. Here’s how to set yourself apart:
Specialize in Client Education
While many salespeople push for a quick close, differentiate yourself by taking the time to educate your clients. Offer free resources like refinancing guides or webinars.
Use your CRM to set up automated educational email sequences that explain the refinance process step by step. This positions you as a trusted advisor rather than just a salesperson.
Offer a Personalized Experience
Use your CRM to deliver a personalized experience that your competitors can’t match. From the initial outreach to post-closing follow-ups, leverage client data to make every interaction feel tailored to their needs. For example, BNTouch allows you to send personalized video messages that explain loan offers in detail, giving clients a deeper connection to you.
Stay on Top of Your Pipeline
Consistent communication is key to keeping clients engaged, especially when they’re shopping around for rates. Set reminders for follow-up touchpoints and use pipeline management tools to keep track of where each client is in the process.
“Leakage” is hugely expensive. BNTouch’s task management features help ensure no client falls through the cracks, giving you an advantage over competitors who might miss key opportunities due to poor follow-up.
Conclusion
Selling in a falling interest rate environment requires strategy, execution, and a relentless focus on client experience. By sharpening your prospecting, delivering customized presentations, and streamlining your closing process with tools like BNTouch, you can capture more refinancing deals than your competition. Stay proactive, focus on education, and use your CRM to deliver a personalized experience. The refinance market is yours for the taking—seize it with both hands.
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