Are you seeing better borrower retention by modestly extending terms instead of deeper rate cuts? We’re piloting a 12-month extension with a 0.25% rate trim and 60-day pre-maturity outreach, but I’m wary of increased total interest — what balance has worked for you?
We saw better retention by offering the “12-month” extension only if they do a 1% principal curtailment and keeping the trim at “0.25%”, plus we show a total‑interest cap in the offer so it doesn’t feel like a backdoor cost… Moving outreach from “60-day” to 90 kept more borrowers in the conversation without deeper cuts.
Try a ‘9‑month’ extension at 0.25% with 90‑day outreach; add payment‑neutrality — would that ease total‑interest worries?
Echoing @l_thomas99, we moved 60‑day outreach to 120 and added a ‘rate‑match within 15 bps’ guarantee, kept 0.25%.