Opening
Intro: call and tell them their loan was triggered on our “refinance radar” (or whatever name you want to use). Do you have a few minutes because there’s a possibility that we can save you a bunch of money?
“This means there’s potential that a refinance may make sense for you. PLUS, this also means that you qualify for our RATE REBOUND since we closed your loan in the last X years. (Say this no matter what. Make them feel like this is an exclusive offer with us and it’s not worth them calling anyone else.) What this means is the process will be streamlined so it saves you time, (I originally had “quicker” but switched it with “saves you time” for two reasons: first, cheaper relates to the quality of something. Cost is an expense. Something isn’t “cheaper”; it’s less expensive. Secondly, “saves you time” is better. Time is the most valuable thing. It not only implies quicker, but uses the word “you” so it registers with the listener more and makes the benefit more obvious.) the process is easier, and most importantly, it saves you money.” (I originally had “cost less money for you” but prefer “saves you money”. If we say “cost less money” then it’s relatively. If costs are $4k instead of $6k, they may not feel like “it costs less.” That’s still a bunch of money. Saving money is always good. Everyone likes to “save”.)
I need your help to get updated information (use “need your help” – most people want to help you… and they’ll soon realize that this helps them. They’ll connect the dots that you’re responsible for making this happen) so I can verify if there really is a financial savings for you. Do you have five to ten minutes so that I can help? (Make this sound easy. I like the “so I can help.” I don’t like “so I can help you” because it sounds too salesy. But we need to tell them why we need the seven minutes. I don’t want to say “get some info” because that sounds like an annoying survey. I don’t want to “confirm information” because that too sounds like data, which equates to work. Keep it vague but positive. So I can help. Remember, the purpose of the call is to get updated info and get them excited.)
Update Info
Here you get enough to run a viable scenario for them.
House Stuff
Confirm the existing rate (make sure they didn’t already refi). Technically, this should go with the “loan” section, but I like starting off with it since that’s what triggered the call. I then like to go straight into the value of the house because everyone likes talking about how much the value has gone up. Get to the “feel good” part quickly and spend more time here to get them excited.
New value? Is house appraisal ready? (i.e. not mid-remodel, no hole in the roof, etc.). No matter what, congratulate them on the value. Everyone is proud of this. Ask them for a range once they give you a value. “That’s amazing. Congratulations. Question for you: on a bad day, what do you think a low-ball value would be?” Let them answer. “Now on a great day, what do you think would be an aggressive number?” I don’t say the value. Using “number” helps separate the house from “the number.”
Any remodeling needed? Updates? Pool?
Survey still accurate? New fence, patio, pool?
- Occupancy still the same? Is future occupancy staying the same?
Loan Stuff
Get the loan balance. Have they aggressively paid down the mortgage? Note: don’t let them get bogged down in details. Just ask if they’ve made extra payments toward principal. I use words like “ballpark, “approximately, about, around”. Then I try to give an example using a big round number. Example: “I see in my notes that you owe around $435,000 and some change. Does that sound about right? Am I in the ballpark?” What we don’t want is for them to get caught up and drag out the conversation. This is a phone call so we can determine if it’s worth diving deeper. Remind them of that if necessary.
Did you remove MI?
How’s your escrow account?
Let them talk. You’ll learn how much they know about this subject. I often won’t ask the following if I feel like it’s too much for the client (which it often is). Remember, keep this simple. If this “intro” call is complicated, they’ll assume the rest of the process is to. These can be questions you ask on the second date once you’ve confirmed there’s a real deal here.
- Do they have an escrow account? If not, do they want one?
- If they do, is it accurate? Is it full?
- Do they want the escrow refund as a “mini cash out”? Do they want to use that to reimburse their out of pocket cost? Net escrows?
- (I wouldn’t bring up netting escrows here. Don’t get in the weeds. You caught them off guard and this is an introductory call to get them in the mindset of the refi).
- Have you changed insurance providers since you closed? (this may impact the renewal date of the escrow and/or cash to close).
- Remind me, when do you pay your insurance bill? Let them answer and then ask: what frequency? Monthly or Annually?
- If it’s October and beyond, have they paid their property taxes? If not, when do they plan on paying them?
Credit Stuff
- Did they get a second mortgage? Is it an A6?
- Current on payments? (Any late payments in the last 12 months?)
- Credit – better or worse than last time? What do they think scores are?
- Future plans: how long to you expect to live there? (see if they plan to sell, convert to NOO, etc.).
- Any debts to pay (for cash out loan)?
- Any expected big debts coming (college tuition, etc.)?
- Any expected influx of cash?
- Do they expect to buy a NOO? (plant the seed)
- Ask if cash flow is important or saving interest is the priority.
- Find out if they want a new 30 year or do a 23 year to keep payments the same. OR reduce even more and increase the payments.
Closing
“Thank you so much for your time. We got a ton of information in a short time. This is a great first step. (This confirms how quick and easy the process is and establishes that “step 1” is part of a process). With this info I will research some programs, shop the rates, and then run some numbers for you. (Say for you. It reminds them of your service and being a helper). That should take me about 30 to 45 minutes. (Say this to let them know that you’re working more than two minutes and there is real effect behind this.. This amount of time shows enough dedication but doesn’t make them feel too guilty. They will most likely tell you that you don’t need to spend this much time on it. You then correct them and say:“yes I do”. This is what I do for my day job. You may recall that when we worked together, my priority (they are a priority to you) was to ensure that you’re in the best mortgage strategy, and that promise didn’t end after you closed. I’m committed to ensure that you’re taken care of and served at the highest level. That makes me feel good and it’s why I love my job so much. (This removes some of the guilt. You sound “selfish”. You love helping them so much that you’re doing it for yourself. Not them.)
Here is the next step for us. (Say that because it turns the “check in” call to a formal “process”).
Let’s do this. Let’s schedule a quick 10-minute call to follow up (use “follow up” because it implies that we’re continuing something that has already been started) so that I can provide an update of what I find. We can then see if the numbers determine (use “determine”, not “decide”. We don’t decide to refi. This is not a decision that needs to be made by human emotions. The numbers will determine this, not people. Not emotions, not feelings, etc.) if it’s worth moving forward (again, implying there is already motion that has started) with the refinance today, or if the numbers tell us to wait for another opportunity. (I like “another opportunity” because it implies that now is an opportunity). Here’s the great news, in the event that the numbers don’t make sense today, this is still a great exercise for us. (“Us”. We’re in it together).If the refinance doesn’t work today, WE will have established a target rate and more importantly, a cost structure, for your future refinance. (Don’t say “the refinance”. I like “you”. It’s their refi to love, to hold, etc. It’s not an inanimate object. It’s not “the” refinance). Meaning, we’ll know an exact rate, program, and fees structure where the refinance will make sense. Then all we have to do is watch for that opportunity. Does that make sense? (I don’t say any questions. If you ask for questions they’ll feel included to ask. Asking them for questions implies that they should have questions. Make sense is great because they don’t want to say dumb so they’ll say it makes sense. Note: don’t say “understand”. There is a difference in make sense vs. understand. For example: it makes since that I put gas in my can and then it explodes to power the engine’s piston. BUT I don’t understand how that makes my tires spin, my AC turn on, etc.)
Which time works for you later today for OUR 10 minute call: 2:00 or 4:00? (Say “our” call, not “the call.” Again, create the ownership and connection that you’re doing this today and it’s OUR meeting. OUR refinance. Give them only two times and let them pick. If they say neither then give them two more options. Make it as soon as possible so they don’t lose interest and/or call another company).
Note: if the numbers make sense on the follow up call, you’ll potentially need to pump the breaks and build a pause into the process so they don’t feel rushed or pressured. Not everyone is like this so use your judgment.
Next Steps
Run Numbers and do the follow-up meeting. Remember to tell them we need paperwork before we lock (need to create urgency).
Note: if the market is moving and you need to lock, then lock and tell them they have 24 hours to get docs to keep it because you were able to get an exception.
Refi Analysis Form
We still need all this info to run the refi analysis properly:
https://mortgagemark.com/home-loan-process/refinance/refinance-analysis/