Key Takeaways

1. The Fed dropping interest rates may be introducing some FOMO into the housing market. 
2. Rolling refinances are a cost-effective way to secure sales while providing an opportunity for a better rate in the future. 
3. Unforeseen circumstances like natural disasters provide opportunities to benefit from rolling refi’s. 
4. Rising home values might make refinancing attractive to those eligible for PMI removal.
5. MortgageRight offers product availability and flexibility to meet any client’s needs regardless of circumstances and maximize your mortgage branch manager salary.

With the Fed dropping interest rates, it’s time to seize a branch manager opportunity for substantial new and repeat business. One way to capitalize on this is to utilize the rolling refi in their book of business. The reason is because it eliminates FOMO for potential homebuyers.  

A rolling refi works by taking advantage of the six-month refinancing eligibility period on mortgages. If someone buys a home now, makes the payments for six months, and interest rates drop, they can refinance at a lower rate – usually at zero cost. 

Why is This Important?

But first, we’ll discuss some reasons that may make a refinance a good idea. Obviously, the lower interest rate will lead to a smaller monthly payment. But there are other good reasons too. For instance, if the home’s value has increased substantially, the removal of PMI could make refinancing a good option. Putting that money towards the actual mortgage would result in a faster payoff. 

Or, in the case of increased value, securing a refinance could allow the owner to take some cash out to pay for improvements. Accompanied by a lower interest rate (and possible removal of PMI) the monthly payment could remain about the same, but the owner would have a few thousand dollars of cash on hand. 

This extra cash could pay for renovations or improvements to the home without putting your client’s financial position at too much risk.  

Of course, this requires staying on top of market conditions and developing meaningful relationships with your clients. When setting yourself apart as an expert, the ability to correctly apply all of this information to a client’s situation will set you apart from a significant chunk of the industry. 

For instance, at the time of writing, a hurricane just ripped through the southeastern United States. Insurance checks will soon start rolling in for people who took significant damage to their homes. Rolling refinances could help several of these people recover from this disaster. 

Leftover insurance money stacked with a refinance could give your client a lower interest rate, lower monthly payments, and the capital to make improvements beyond the necessary repairs. To be sure, the math would depend on individual circumstances. But imagine the repeat business and referrals simply because you were quick to help people in need. 

Even if they decided to use the leftover insurance money to pay down the principal while securing a lower interest rate, you’ve helped them turn a negative into a positive, and people remember that. 

Another reason to refinance is getting your client approved after they’ve rebuilt their credit. Homebuyers will often be stuck with a higher rate simply because they fell on some hard times. But if they’ve worked hard to put themselves in a better situation, getting them a lower rate could lead to thousands of dollars of savings over the life of the loan. 

How to Offer a Competitive Rolling Refi

At MortgageRight, we’ve created a structure that gives loan officers and branch managers every opportunity to capitalize on these circumstances. A famous coach once said, “The best ability is availability.” A full product portfolio is one of the biggest keys to success in this business. 

Having access to a full product suite is bolstered by competitive pricing. At MortgageRight, there are no layers of management between you and the decision makers. So, to be competitive you need a branch manager opportunity that gives you access to a snappy underwriting process and removes all the guesswork. 

This is especially important when locking in a new lower rate after a rate cut. The ability to tailor a refinance solution to a particular client situation and get it approved quickly is a massive competitive advantage. 

Further, staying on top of the news cycle regarding interest rates is crucial to remaining competitive through 2025. Don’t be surprised if you see significant market volatility in the coming months due to changing economic conditions and the political cycle. 

You’ll also want to discourage any attempts to time the housing market. And this is where the rolling refi option gives you an edge. Putting your client in a position to benefit from market changes without relying on a faulty sense of prescience will remove any guesswork or FOMO. 

Client Acquisition and Retention

In particular, the rolling refinance gives you all that. Plus, it helps you build long-term relationships with your clients. With the rolling refinance option, clients are eligible for refinancing after six months of on-time payments. This gives you a good reason to reach out to your clients regularly. 

In most cases, the best candidates for refinancing are those who plan to stay in their homes in the long run. This makes sense because refinancing and selling the home a year later will likely lose money for the client due to closing costs. That is unless the client is pulling cash out to make improvements to command a higher sale price. In that case, it could be a viable option.

The rolling refinance is probably best for those whose circumstances have changed dramatically. For instance, imagine you had a client who bought a house when interest rates were at their highest, their credit was mediocre, and the down payment was less than 20% (meaning they had to purchase PMI). 

With a rolling refinance, your client would appreciate you reaching out every few months. Rate drops, credit repair, and home appreciation make them a perfect candidate for refinancing. And because you’d been reaching regularly, you’re far more likely to get that business.  

This also means you’ve provided value far beyond a one-time mortgage deal. Showing your clients that you were engaged and could put them in a much better position financially would go a long way when you ask for those referrals. 

MortgageRight’s Edge

And all of this is because MortgageRight was built from the ground up by producers for producers. We’ve given you access to everything we would want when competing as mortgage branch managers in this business. 

We started with transparent pricing, gave you some of the industry’s best technology and software options, and then gave you 24-hour underwrites and guaranteed on-time closings. All of this means loan officers and branch managers have the opportunity to deliver superior refinancing options. 

A Mortgage Branch Manager Opportunity

And we’d love to have a conversation with you, too. Simply visit this link to schedule a visit with one of our specialists to see if a loan officer or branch manager opportunity with MortgageRight is your path to a more rewarding career. We’re a true P&L model that is set up to give the freedom to do business your way so you can close more loans and make more money. Remove your limitations and experience branching done right with MortgageRight!