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Buying a house is easier said than done. Not only does your client have to find the place they want to live, they also need to worry about moving costs, mortgage payments, and interest rates. One of the best ways to prepare them to buy a new house is by doing your best to research and forecast what these costs will look like. Today we want to talk to you about mortgage interest rates, and where they’re going for the next few years. Why Do Interest Rates Fluctuate? There are multiple reasons why interest rates fluctuate, one of those being your client’s credit score. If their credit score is higher than someone else’s, they might be able to buy the same house at an equal cost, but with different interest rates on mortgage payments. The economy and country also affect interest rates. It’s a classic case of supply versus demand. If there aren’t many people buying houses, interest rates might go up to meet the supply. In addition, inflation of our currency can cause interest rates to go up. This allows lenders to earn the same amount of money they would have when the dollar bill was worth more. Current Interest Rates Currently, interest rates for mortgages are hovering around 2.375% through our brokerage. 15-year rates are as low as 1.875%. But this can obviously change between individuals. The cost of the home, down payment, credit score, and more can change how much an individual’s interest rate will be. However, if they’re looking to purchase a home immediately, this is a good estimate of what that mortgage loan interest rate will look like this month. Where They Are Headed The estimated 30-year fixed mortgage rate is estimated to be around 2.5 - 3% for the remainder of 2021. However, it’s important to remember that interest rates aren’t guaranteed for your client. Like we mentioned above, their individual circumstances can affect how much interest they’ll accrue for their house. This can include the cost of their house, income, credit score, down payment, and much more. Preparing Clients to Get the Best Deal on a Mortgage To help your client get the best deal on their mortgage, it’s important to help them prepare. This can include working on raising their credit score, teaching them how to negotiate, or even encouraging them to increase their down payment. If you want to help your client get an amazing home, while also giving them a great deal on their mortgage, get in touch with us today. We have all of the classes and certifications you might need.
Nothing makes a business boom more than a referral. Even if your most loyal customers consistently come back, there won’t be much growth to be had if you aren’t consistently bringing in more business. That’s why mortgage referrals can completely change your customer base, clientele, and even your profits. Today, we’re going to give you tips and tricks on how to create a mortgage referral-based business. Go Above and Beyond One of the best ways to get more referrals is by exceeding expectations. While your main priority is to provide home buyers with a mortgage, taking the extra steps to help them remember you will definitely increase the likelihood that your clients will refer you to their friends. By doing simple things like creating a house-warming gift basket, giving them a list of local shops and restaurants to explore, and connecting to clients and real estate agents through LinkedIn, you’re sure to create a rapport that they will tell their friends about. Communication is Key Another great way to increase the likelihood of referrals is by communicating thoroughly throughout the mortgage process. If you sneak hidden fees and charges into your services, your client’s friends will most likely hear about it. Instead, give information about all of the charges up front, and tell them the reason behind all of them. Ensuring clear communication will increase the satisfaction among new homeowners, and will increase your chances of having new customers in the future. Build a Community Lastly, building a community that knows and loves your work will increase your chances of new and steady business. Oftentimes, neighborhoods or cities will have different events such as block parties, carnivals, or barbecues. See what you can do to support these events and get your name out there. And, if you have a wide range of social media platforms, you’re likely to get a larger following on each. Even if no one in the community is looking to buy a house just yet, chances are that they will think of your name as soon as they are. Want to know even more ways to become a great loan officer? We have a variety of courses that will help you further your expertise. Get in touch with us today to learn more about what we offer.