According to a Q1 2017 equity report by Corelogic, "Homeowners equity increased by $766 billion over the last year." Just last month (June) 50% of refinance transactions were cash-out!! Whether it's for a debt consolidation or home improvement, cash-out transaction are hot and steamy this summer!
The uptick in rates at the beginning of the year really put the brakes on rate and term refinances. Cash-out refinances, on the other hand, aren't as rate sensitive and it shows in the numbers. The volume of cash-out transactions only took a small dip since December when rates took a hit. First mortgage rates are still low, so taking cash-out to pay off a high interest credit card, auto loan, home equity line, or solar financing is starting to make a lot of sense to home owners.
If you are wondering how to keep your foot on the gas through fall and winter, you may want to consider executing some cash-out refinance mortgage lead generation efforts. You might as well, your clients are doing cash-out refinances in a big way with or without you. They are your clients, you should keep them.
How do I identify cash-out refinances in my market?
Ohhh, pick me, pick me, I know! There is a lot to it, but I'll give you a hint: You need to identify home owners with equity, decent credit, and an intent signal or need. Then you just need to target them with a great marketing message at the right time. If you have that all in place, great! If you need help, give us a ring!