A home equity line of credit, or HELOC, appeals to borrowers and lenders alike. Lenders want to finance homeowners who have a lot of equity in their homes, and borrowers like the extra cash flow HELOCs provide. A HELOC allows a homeowner to tap into, or "draw," a certain amount of equity to cover a variety of expenses. Lenders target qualified borrowers via print ads, direct mail advertising, social media, television and radio.
Value of Direct Mail Campaigns
Direct mail campaigns allow lenders to send HELOC information to homeowners that seem to have equity and may qualify for a line of credit. HELOC offers state the key benefits of tapping into equity. The lender may include a loan application in the offer letter to facilitate the application process for the homeowner. A mortgage representative may also follow up with the homeowner on a more personal level, via email or phone call, to ensure receipt and answer specific questions the homeowner may have.
365 Days of Digital Marketing
Lenders tend to advertise HELOCs more during spring and fall, but lenders also advertise year-round. By using social media, financial institutions develop a continuous presence in the minds of homeowners. Effective social media marketing requires grabbing readers' attention quickly. They must also keep it long enough to explain the benefits of HELOCs. Attention grabbers such as entertaining and witty Twitter posts, Facebook posts, YouTube videos and blogs addressing common homeowner questions, help lenders connect with interested borrowers.
Getting the Competitive Edge
Lenders may offer incentives to potential HELOC borrowers, further encouraging them to apply. Free checking or discounted bank services may entice a borrower to use a commercial bank, rather than their current mortgage lender, for example. Incentives help pique borrower interest and may provide the lender with a competitive edge. Lenders may also advertise low- or no-closing cost HELOCs. Interested borrowers should always read fine print in ads and request an upfront estimate of fees when inquiring about a home loan or HELOC.
Promoting Over the Airwaves
Lenders can use radio and television advertising to target more people than print advertising might. Local cable TV companies sell advertising spots on national television programs that only appear to the viewing audiences in targeted geographical areas. Radio advertising is a less expensive way to promote HELOCs among a specific demographic or geographic area of homeowners.