Of course there are. Millions of homeowners still have opportunities to reduce their mortgage payments by refinancing their loans. But the number of refinance mortgage applications has fallen for several straight weeks and led an overall decline in demand for home loans, per the weekly survey by the Mortgage Bankers Association. What should a broker do?
First, keep marketing and asking for referrals: Black Knight’s research shows there are over 11 million mortgage holders who could still benefit. Rising interest rates have been scaring off potential refi candidates who believe the window may have closed for obtaining a lower rate on their mortgage. Or many don’t even know their mortgage rate. There are still plenty of clients for you.
Experienced brokers know the subjects to touch on, calculations to make, and questions to ask. “How much can you save every month? What would you do with that money? How old is your home loan? How much do you owe, and let’s compare that to a rough estimate of your home’s value. Let’s run credit report.
Yes, millions of borrowers have purchased homes in the last year, or refinanced, and they are not prime refinance candidates. (“Have any bills you want to payoff?”) And mortgage rates have risen, but not much. April has begun with30-year fixed rates around 3.125-3.25 percent. You can’t complain about that!
But the MBA’s survey shows refinance applications were down 32% from the same time last year, and refinances are hovering around 60 percent. Fortunately purchase apps are 39 percent higher than a year ago. At some point “affordability” may become an issue, but currently rents are still higher than monthly payments at current rates, and nearly every Orion AE reports that brokers tell them home prices in their area are marching higher due to demand and a lack of inventory.
Orion’s brokers know their markets and clients better than anyone, certainly better than internet lenders. Play to your strengths as there are millions of borrowers with relatively high rates who may not even know what their current rates are!