It seems that since the rates have dropped, many people are shopping around for refinance options. This may be a good time to reach out to your past clients, especially any that have closed within the last six months.
Loans that have closed within the last six months, may be subject to an Early Payoff Fee if a borrower decides to refinance. When I was a loan officer, I would evaluate these loans to determine if a refinance would in fact be beneficial. If the refinance makes sense you may want to reach out to the borrower before they start shopping around. I would often offer them a preferred client discount for their returned business.
You may find that they are happy with their current loan and choose not to move forward, but it’s always a good idea to be proactive. There is nothing worse than finding out that your client went to one of your competitors. And then to top it off, you are charged with an Early Payoff Fee. I like to call this a double whammy! In addition to saving yourself a loss, your client will be pleased with your client service model.
I’d love to hear from you regarding your strategies to avoid Early Payoff Fees in a moving market! Comment below!