Key Takeaways:

1. Refi volume is a powerful tool: You should leverage refinancing opportunities to generate extra capital, which can be reinvested in growing your branch.
2. Maximize P&L: By focusing on refinancing, branch managers can significantly increase their P&L while gaining more control over their earnings.
3. Freedom to control your business: With MortgageRight, branch managers can run their operations without corporate red tape, allowing them to capitalize on refi volume more effectively.
4. Support for growth: MortgageRight’s pro-growth model gives managers the tools to scale their business and market themselves effectively, enhancing both volume and profitability.
5. Refi remains strong: Even in changing market conditions, refi opportunities present a reliable avenue for boosting business, especially when combined with MortgageRight’s resources and support.

The mortgage market will depend heavily on refinancing in the coming months and years. This presents an amazing opportunity for bolstering your P&L and increasing your mortgage branch manager salary. Here’s why.

Since there is still a shortage of new homes, many potential buyers have opted to hold off on new home purchases. However, the new administration has promised to further cut interest rates, which could ignite the market. While new home builds and dropping sale prices would lag slightly, this should open up more opportunities in the refinance market.

Since refinancing doesn’t require finding a new home, there’s more flexibility on that side of the business. This has kept refinancing a significant topic of discussion. And MortgageRight’s model helps branch managers capitalize on it even in fluctuating economic conditions. Refinancing clients are typically easier to find than traditional mortgage clients, and the process tends to be more straightforward.

The Power of Refinancing to Bolster P&L

Focusing on refinance business accelerates a branch manager opportunity with MortgageRight. It provides an immediate and scalable way to boost profitability. Even though rates rose slightly after the election, they’ll likely see downward motion soon. 

Since interest rates have exceeded 8% in the last few years, plenty of people should be looking to save money on their monthly payments. Even though many people who bought just before and during the pandemic will have locked in much lower rates, those who’ve bought more recently may benefit from refinancing. Many experts say that a 1% interest rate decrease on a mortgage is worth the refinance.

For example, let’s plug some numbers into the mortgage calculator. Say you purchased a $250,000 home with 20% ($50,000) down on a 30-year, 8% note. With some baked-in assumptions about property taxes and insurance, your monthly payments would be about $1,468. Further, over the course of the loan, you’d pay $328,310 in interest, making your total repayment $528,310.

Now, let’s say we could refinance that same loan to 7%. Your monthly payments would drop to about $1,331. Plus, your total interest paid would drop by $49,292 to $279,018. The total repayment amount would drop to $479,018.

Even better, if that same loan were written at 6% over 15 years, the monthly payment would be $1,433 (less than the 30-year at 8%). And the interest paid would only be $143,887 over the life of the loan. 

So, as you can see, there are several ways to work a refinance deal to get the most money for a client. You can use refinancing to save on the monthly payment. But you can also use refinancing to save tens of thousands of dollars on interest over several years. This allows the homeowner to build equity rapidly. 

And if the client later decides to buy a new home, the equity you helped them build gives them incredible flexibility during the purchase. So, if you can bring in a steady stream of refinance business, you’ll generate additional revenue that can be used for marketing, team expansion, or improving operational capacity.

And MortgageRight understands all of this which is why we are the right place to do it. We support managers with flexible options to scale refi volume, giving them more control over their profitability.

Gaining Financial Control with MortgageRight

Because of market fluctuations, we know that you may have to compete on price for certain periods of time. It’s much easier to do so when you know upfront what your costs and fees will be. The transparency offered at MortgageRight is a staple of our model.

MortgageRight provides a pro-business model. We allow branch managers to control their margins, resulting in a direct boost to P&L. The reason we are so flexible is because we operate based on a flat-rate fee. We’re okay with you lowering or raising your margins based on the needs of your market and P&L.

All this means that a branch manager opportunity at MortgageRight allows you to manage and grow your branch without the burden of corporate restrictions. We’ve eliminated corporate bureaucracy and complicated fee structures, enabling managers to capitalize on refi volume more effectively.

Here’s what Beth Kinnell had to say about the freedom of partnering with MortgageRight,

“At MortgageRight, we say it’s your shop, you run it the way you want to, of course, within compliance. But you really do. You get to make those decisions. You get to dictate what you pay your staff and what you pay yourself.”

Refinancing as a Strategic Growth Tool

What’s most important about refis is how they go beyond your immediate revenue — it’s a way to build long-term growth. If it were just about the short-term revenue stream, the model at MortgageRight would already be amazing. But because of the experience you provide to your clients, they come back next time and refer their friends to you. Just don’t forget to ask for it!

Refi volume is a great way to fuel sustainable business expansion. The capital produced by refis can be reinvested into team-building, marketing, or infrastructure. For example, if you wanted to expand your team or make a marketing push on a different product, building a steady stream of refis would finance those goals.

The capital you raise through refis is also a great way to install systems on the backend that help you grow. For instance, many companies struggle to use social media to its full potential. However, you would be able to hire a social media specialist and use the technology we offer to make that a profitable marketing channel. 

Simply, MortgageRight’s flexible structure supports managers using refinances as part of a broader strategy to grow their branch. Because a refinance doesn’t involve the homeowner jumping into the housing market, there’s much less friction in getting those deals. 

Further, if rates go down, you’ll want to be in a position to capitalize quickly. And our 24-hour underwriting guarantee gives you the ability to do just that. When you’re not having to wait on underwriting, it’s much easier to employ growth strategies in your business.

Use Market Trends to Drive Profitability

Refi volume remains a reliable avenue for profitability, even as the market changes. And as refinancing trends evolve, it’s important for branch managers to stay adaptable. Rates are going to fluctuate and the administration taking over in January is likely to have a much different approach to housing. No matter which way the market breaks, MortgageRight has committed to providing tools and resources to help branch managers anticipate these trends and optimize their operations. And it’s as simple as heading over to this link to see how MortgageRight is the perfect place to increase your P&L and grow your business.