Mortgage lending professionals provide financing and tips that enable families to borrow money for a home. However, certain economic climates can change a borrower’s prospective toward the housing market. Mobile Copywriter shares helpful tips for marketing mortgage loans when interest rates are rising.
Rising Interest Rate Environment
Interest rate adjustments are useful as a hedge against inflationary pressures.
Although, home buyers typically view rising interest rates as a bad sign for the mortgage market.
Buyers are often consumed with the thought about higher rates leading to larger monthly mortgage payments.
Lending professionals who are marketing mortgage loans as interest rates are rising must continuously keep borrowers informed about the benefits of securing affordable home financing.
Educating Home Buyers
Home buyer education is essential for first-time purchasers and for repeat buyers.
Mortgage brokers, lenders and real estate agents who provide exceptional value for home buyers might also notice higher sales revenue.
Informing borrowers about the current interest rate conditions and the advantages of securing a rate lock to know exactly what their long-term mortgage payments will be should provide some positive insight among home buyers.
Using certain strategies to offset a higher mortgage payment could be helpful, too.
For instance, instead of making a down payment that is larger than the required amount for a loan approval, a borrower might be able to pay off a $3,500 credit card balance.
If paying off the credit card eliminates a $60 monthly payment, it may now be easier to afford a mortgage payment that has increased by $50, as a result of rising interest rates.
Advising a borrower who is seeking a loan approval to refrain from credit inquiries, late payments or from opening new accounts should also be viewed as prudent financial tips.
Additionally, any opportunity to increase a borrower’s credit score might help her obtain a lower mortgage interest rate.
Marketing Mortgage Loans to Homeowners
When mortgage rates are ultra low, many loan originators are thrilled to tout the cheapest rates of the week.
However, in a changing rate environment, where interest rates are frequently moving in different directions, an experienced loan officer should be able to speak candidly with a home buyer.
It is important for borrowers to know that interest rates will fluctuate.
Providing borrowers with details about historical data might provide information that is useful for future planning, such as starting with an adjustable-rate mortgage that is fixed for a one-year term or for a five-year term.
Alternatively, a borrower might want to lock-in a fixed-rate mortgage loan, with the goal of refinancing when market conditions improve.
Higher interest rates provide mortgage marketing opportunities for seasoned loan officers to follow up with borrowers in the future.
Marketing Mortgage Loans to Home Buyers
Mortgage brokers and lenders should be viewed as champions for home buyers, as getting funded is the most important part of the journey.
The housing turmoil that occurred around 2008 has largely caused millennial buyers to delay the thought of homeownership.
Brokers and lenders who are marketing mortgage loans to millennials, first-time home buyers or to previous buyers should highlight the benefits of buying a home.
For instance, lending professionals can reiterate some of the items shown below:
- The advantages of buying a home versus renting.
- Mortgage interest deductions
- Property tax deductions
- Long-term payment protection versus uncertainty
- Ability to borrow against the equity within the property
- Buy with low down payment or no down payment
- Property may be left for loved ones
- A home may be customized or remodeled versus a rental
- Home value may used toward owner’s net worth
- A house may be sold for a profit
Mobile Copywriter creates web pages, blog posts, social media posts, email for marketing mortgage messages, press releases, brochures and newsletters. SEO copywriting services and article writing services are also offered to help brokers and lenders generate mortgage leads.
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