With consumers hanging onto low interest rates, many mortgage professionals are strategically focusing on sales of cash-out refinance options. Pivoting toward these alternative options is definitely a step in the right direction. Adequately preparing your loan officers to make the sale is a crucial next step that, unfortunately, many companies forget to take. Because consumers view cash-out refinances as less familiar and more complicated than rate reduction, loan officers carry the important responsibility of educating their clients. As Monster Lead Group founder Ken Bartz explains in this video, successful cash-out sales come from moving consumers past immediate interest rates and getting them to see the bigger picture benefits of refinancing.

Using Data to Drive Decisions

Instead of simply surrendering when consumers cringe at the higher interest rate of a cash-out refinance, loan officers can use data to help clients understand the advantages of refinancing. Presenting black-and-white information that details how refinancing can bring long-term benefits can help consumers make the mental leap necessary to seriously consider a cash-out. For example, a detailed (and patient) explanation of how refinancing can help a homeowner consolidate and pay off their credit card debt — at a lower total monthly payment amount — as part of their new mortgage can open a consumer’s eyes to the advantages of cash-out alternatives. Some simple math can reveal how cashing out creates financial opportunities for consumers whose monthly budgets may be bogged down by other debts. Enlightened by this data, a consumer will be able to move past their initial fear of refinancing, opening the door to the loan officer to make a sale.

Crafting a Long-Term Vision

A cash-out refinance is typically viewed as a short-term financial solution, but savvy loan officers know that explaining the long-term benefits of this option can help convert challenging leads to successful sales. By crafting a long-term, positive vision of the future, a loan officer can help a consumer see the bigger (and better!) picture of themselves as a refinanced home owner. For example, instead of focusing on next month’s smaller payment, focus instead on a year’s worth of savings. Remind the homeowner that this year’s worth of savings could be put toward something that will bring them even more worth — whether it be financial worth such as a home improvement, or personal worth such as a vacation or medical procedure. The best loan officers are able to quickly identify a consumer’s long-term goals and explain how they can help them get there — even if it means accepting a higher interest rate today.

Partnering With Experienced Professionals

Finding a partner like Monster Lead Group who can help mortgage organizations educate and empower their loan officers will ultimately boost sales and overcome competitors. With rising interest rates and more market challenges predicted, it’s crucial that companies make sure every single employee is operating at 100% — which is where proper training, performance tracking, and streamlined processes comes into play.

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