Mortgage rates reached record lows due to the COVID-19 pandemic. With interest at a bargain, homeowners are looking to refinance. Refinances accounted for about 65% of all mortgage applications in August, according to the Mortgage Bankers Association Weekly Applications Survey.
Why are consumers interested in refinancing right now? Homeowners across the nation’s 50 largest cities could save an average of nearly $23,000 over the life of their loan by refinancing. During the first quarter of 2020, borrowers who refinanced their first lien mortgage in the first quarter of 2020 lowered their rate by an average of 0.75 percentage points, according to Freddie Mac.
The reason why a homeowner should refinance is clear. Your challenge is to get them to choose your credit union over a traditional bank. The COVID-19 pandemic has created an unprecedented opportunity to attract new customers. Here’s how to capitalize on low rates.
1. Use It to Attract New Members
According to the mortgage data analytics company Black Knight, almost 13 million borrowers could save money by refinancing, creating a record number of potential customers. Many banks are experiencing a backlog of applications with a waiting period of as much as 120 days. To address the overwhelm, banks like Wells Fargo, U.S. Bank and JP Morgan Chase are tightening requirements, which means fewer applicants will qualify.
continue reading »