4.5% Mortgage Rates, Do Your Past Clients Know?

Can you believe that the Treasury is actually considering a plan to force mortgage rates down to 4.5 percent? That is incredible news for real estate and mortgage brokers everywhere--assuming your clients know about it.

Millions of homeowners and new home buyers are sitting on the sidelines waiting for that magic number. And hundreds, maybe thousands of them are sitting in your contact database.

The question I pose to you is who is going to tell them about that magic number, when it comes? If you are like most real estate or mortgage brokers, it will most likely be the local newspaper or a more aggressive broker. Don't let that be your fate--start talking to your past clients now and regularly.

Segment Your Database by Rate Targets

Start segmenting your lead management database into target rates. This will create list of people to market to at various rate triggers. This segmentation will help you build appropriate campaigns that make sense considering their current loan program.

Do this now, not when 4.5% hits and you are now scrabbling to compete with everyone else. Remember 2000-2004 when every borrower was getting assaulted with calls from everyone with a mortgage license.

Develop a Campaign

This is a more complex market and household are nervous. This isn't going to be a one call, email, or direct mail close. You are going to have to develop a relationship.

The nice thing is that this is one of those rare mortgage market opportunities that is showing itself early. Fortunately for you, most Realtors and mortgage brokers are too worried about surviving to lay the marketing groundwork for this big opportunity.

Educate Customers on What is About to Happen

You can make this a great experience for your customer--let them know what is about to happen with no sales pressure. Your only objective is to get them back in your active sales pipeline. We often forget they don't watch the market like we do--they may not even know this is coming.

This first step is going to be a big win. They are going to appreciate you making the effort to tell them about the lowest rates in recent history, the chance to stop squirming over their ARM, and you will be a lock to get their business when their rate target comes. This is how you avoid competing with all the lemmings when the Treasury rolls out that magic rate.

Ask Them to Let You Managed Their Rate Target

If you are really smart you will take it one more step. If your customer is not ready to do something today with already low rates, that's okay. However, don't let that be a rejection. Ask them to let you worry about when their rate comes along. Offer to manage their mortgage. Ask them what rate they would like to refinance at--tell them you will call them immediately when it is available.

The best way to do that is to get them on your email list for market updates. You don't have a regular email newsletter? Get one today. Go to AWeber right now and sign-up. It is easy and cheap and will bring you hundreds of deals.

Now they don't have to worry about it--if it is available you will get it for them. And you have a customer lock, no competing.

Be Ready to Lock and Close Quickly

If the borrower trust to monitor their mortgage rate, don't betray that trust. Set up an air tight tickler system to alert you to who is ready to refinance and at what rate. Then lock and close fast. Making the process painless and worry-free will get you a client that trust you to manage their mortgage for life.