Saturday is quiet for rates and lender news, with Bankrate's 30-year at 7.28% for a third day, so this brief leans on one data point that gives your past-client outreach a hook. First American Financial, reported by Scotsman Guide, put accessible home equity at $13.2 trillion at the end of the second quarter. Senior economist Genaro Villa said "nearly nine out of every 10 accessible-equity dollars sit behind a mortgage rate below today's market rate." ICE Mortgage Technology data in the same report shows two-thirds of current borrowers had rates under 5% at the end of July and more than half had rates below 4%. Cotality adds that borrowers who bought in 2020 or 2021 pay an average of $915 a month less than those who bought in 2023.
Here is the rate math behind it. On a $400,000 balance, a homeowner at 4% pays about $1,910 a month in principal and interest, while the same balance at today's 7.28% would cost about $2,737, a difference of $827 every month. The Mortgage Bankers Association reports refinance applications 61% below a year ago, and Bankrate's 30-year has ranged from 7.28% to 7.57% since October 1. For this group, a new first mortgage is not the conversation. The equity and the low rate they would give up by moving are.
The tactical move is a no-rate, no-payment email to past clients whose note rate is 4.5% or lower. Open with one question about a project they have been waiting to fund, offer a short snapshot of their balance against their home's estimated value, and keep every rate and payment figure out of the first touch. If your shop offers a home equity loan or line of credit, that is the next conversation; if it does not, the snapshot is still a reason to be the person they call first.
pull every closed loan at 4.5% or lower from at least two years ago and draft the one-question equity check-in email.