Most homeowners have a low-interest rate first mortgage in today’s current market that they don’t want to touch. They have a lot of equity due to the high home price appreciations. And they are beginning to need cash. This is the perfect storm for offering home equity lines of credit or HELOCs. HELOCs are an ideal example of how banks can provide valuable products to their customers that fill a need (cash) when they need it. A HELOC is a home equity line of credit that allows homeowners to borrow against the value of their home. This can be an excellent option for those who need access to credit but don’t want to take out a loan for a specific purpose.
How Altair Data Can Help
The HELOC offers marketers another advantage over most other credit products- the ability to offer loans without precisely anticipating when they will be needed. This means that a line of credit can now open up and be available for use by customers for future needs and not negatively affect their current financial situation or plans.
Not everyone qualifies for a HELOC, and fewer than that will apply for one. In order to be successful, a bank’s efforts must be targeted to qualified customers and prospects with a solid propensity to apply and be approved.
Altair Data is an expert in data-driven marketing and credit marketing. We got our start in helping 15 of the largest 50 banks in the U.S. with home equity products. We’ve accumulated a wealth of information that accurately can tell you which of your banking customers are:
1. In need of cash due to high debt installment or revolving loans
2. Homeowners with significant equity in their homes; and
3. Have good enough credit and payment history to qualify for a second mortgage.
That’s why the largest mortgage lenders and consumer lenders turn to us for their data.
Why Offer a Home Equity Line of Credit Now
With the explosion of Fintech and the related multitudes of unsecured, high-interest consumer loans, many consumers have high-interest rate credit card debt or installment loan debt. The interest rate on these is much higher than on HELOC products. So, banks can offer their customers a product that fits their needs very nicely.
Advantages of a HELOC
There are many different advantages to your customers using a HELOC. Here are some of the most important ones:
-The interest rates are typically lower than on other types of loans, particularly unsecured loans, which makes them more affordable
-The money can be used for various reasons, which gives people a lot of flexibility
-It’s a great way to get access to cash
-The credit line can be used for anything, including home repairs or renovations, paying off debt, and covering unexpected expenses
-It doesn’t affect the low first mortgage interest rate and payment that many of your customers currently have
Bottom Line
A HELOC can be an excellent option for those who need access to cash quickly and easily. It has many benefits, including low-interest rates and lots of flexibility.
Banks’ efforts must be targeted at qualified customers and prospects who have a need high likelihood of being approved for credit. Banks can focus on providing the best possible rates and products to those who are most likely to take advantage of them. This, in turn, leads to increased business for the bank and a higher level of customer satisfaction.
At Altair Data, we can help you target these individuals for better in-market leads. Contact us to learn more about how we can help you grow your business.