Truth and Math matter now!
We have seen a real jolt to the bond market and pricing is trying to find a new level. This happens from time to time and those of us who have been at this for a while are prepared for the questions and reactions of our clients, prospects, and referral partners. A few simple things to remember:
- You don’t control the rate markets! If a client wasn’t locked on their loan, or were “waiting” for the “bottom”, that was a risk they took, not you. Don’t feel guilty unless you lied!
- Do the math! Take a few minutes and share the actual costs in monthly payment in a move of .25% . Sometimes rates are an emotional hurdle until they see the actual dollars.
- Share offsets and strategies. Maybe we borrow less money to keep the payment where they are comfortable or maybe we buy down the rate?
- Remember that car payment of $350 a month was equal to about $70K in mortgage proceeds? What are some of the budgetary things people can do to make the new payment work?
We also don’t know where this ride will take us. Please don’t predict the markets! Your ability to share real information is priceless! Get a few charts showing the rate market over the last two years, people got loans in the 3% and 4% range and were happy to have them! Just because we came off the bottom, doesn’t mean it’s no longer a good deal to buy a house or to refinance one. A good number of people have mortgages they are paying right now that have rates of 4% or higher!
Watch the markets and your own company pricing! Be honest and provide options! Don’t be surprised at all of those people who were trying to wait for the “bottom” who now think they have to act right away because they “missed it”.
We are in the loan business, not the rate projection or prediction business. Share the facts, tell the truth, and show the math!
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