In its simplest definition, a reverse mortgage is getting a loan wherein the lender pays the borrower. Compared to a ‘forward’ mortgage, where someone applies for a loan to buy a property, reverse mortgage doesn’t require homeowners to pay. Instead, it takes part of the homeowner’s home equity and converts it into payments. It is like an advanced payment for the borrower’s home equity, which is usually tax-free.
Reverse mortgages can provide financial aid to seniors whose net worth is tied up in their property’s value. According to the National Reverse Mortgage Lenders Association, homeowners aged 62 and older held $7.14 trillion in home equity in the first quarter of 2019 — the highest since 2000. This underlines how significant a source of wealth home equity is for retirement-age adults.
Thanks to advertising, reverse mortgage loans get more exposure compared to other mortgage products. You can ensure that seniors in your area get the right information on the process through direct mail marketing – and ideally, that they call you to get started.
Does Direct Mail Marketing Still Work?
Reverse mortgage lead generation using direct mail marketing feels outdated, but it is still a reliable way to reach your audience, grab their attention, and connect with them on a personal level. In 2021, standard direct mail open rates reached nearly 90%. On the other hand, Mailchimp estimated that email marketing only got a 23% open rate.
The power of direct mail is evident. And its effectiveness can be seen across industries, including mortgage and real estate.
Direct Mail Options for Reverse Mortgage Marketing
There are several direct mail options you can do for your reverse mortgage marketing campaign that can suit your budget, style, and approach. Direct mail can come in the form of the following:
Letter: This format is excellent for reverse mortgage notifications. It can be monochromatic or colored. Use letters to directly deliver your information or a personal message to your prospects.
Flyers: Flyers can have a direct impact on your audience and encourage them to take immediate action. Often carrying a bold design, these can serve as a great reminder about mortgage refinancing opportunities, rate changes, upcoming mortgage events, etc.
Inserts: Free-standing inserts (FSIs) are single sheet ads literally inserted between printed media like newspapers and magazines. This format is great for targeting audiences located in specific areas. It can include promotions, details on current sales, mini-catalogs, and new product announcements.
Postcards: If you’re worried about printing costs, postcards would be your best bet. Use creative imagery to showcase your reverse mortgage services. Don’t forget to include a call to action like phone numbers, websites, or social media handles where your audience can easily connect with you.
If you’re considering direct mail marketing for reverse mortgage lead generation, talk to us at OverflowWorks.com and we’ll help you!