#ThursdaysThoughts – Rates and Amortization! There’s two ways someone can “save” money on mortgages. One is through extending the term, and lowering the interest rate. Another way is by shortening the term, and/or lowering the interest rate. Yes rates, let’s talk about historical facts for a minute. We are close to the lowest rates have ever been, period. If your clients are seeking to “save” money, debt consolidation and elimination of mortgage term is a great way to go. What I mean, is show your clients even if in the recent past they did a loan with you, that you could potentially help them access equity and or shorten their term, all due to where rates are today.
Did you know what is called “Re-Casting” can be done 1 time a year by all major servicers? If your clients want to put a large amount down (10k or greater) on the principle of their loan, the new payments can be based on the time left and the new balance. That’s called “Re-Casting”. And is something all servicers will do as a courtesy 1 time a year. Many LO’s do not teach this or even know about it. But it’s a great way for someone whom is proactive to pay off their home fast. ↓ #SalesJUICE
While somewhat elementary to those in the mortgage industry a long time, the problem lies that most LO’s do not house a database that actively monitors their rate and identifies opportunity to help others due to interest rate deductions. Today I want to highlight #ThursdaysTool for you LO’s – STIKKUM – a way for you to monitor your past clients “rates” and to identify when they are in the market. Not only do you get notifications when someone is shopping for a mortgage due to their mtg credit pull, but you can actively monitor for times like now when it’s best for you to reach out to your past clients to save them money monthly. There’s touch points to service your clients like birthdays, and holidays that they can get customized letters and email follow up that remind them of you. CLICK HERE to find out more about ways to make the most out of your past client pipeline, and be a #Lender4Life for your clientele.
As I always say –