Tom Davis (pictured prime), chief gross sales officer at Deephaven Mortgage, was shocked to see a current financial institution survey displaying what number of owners had been fully unaware of residence fairness merchandise.
“It was one of many prime 10 banks in the USA, and of their survey, it mentioned like 35% of their mortgage debtors didn’t know residence fairness merchandise existed,” Davis instructed Mortgage Skilled America.
Differentiating your self from the competitors
Davis mentioned one other advantage of pitching second-lien merchandise is that it units you above your competitors. In case your clients are buying round, you may name out those that are solely attempting to supply them a refinance.
“As an advisor or a mortgage officer, it is best to current each,” Davis mentioned. “You possibly can say, ‘You might do a refi money out in your first, however you are going to lose this 2.5%, 3% mortgage charge that you’ll by no means see in your lifetime once more, greater than probably. Or you can maintain that, defend that proper. That’s an vital asset: low cost cash. After which you can do a second lien for the quantity that you just want at this charge.’
“And if that borrower is speaking to another person a few first lien, they usually’re solely giving them one possibility, and also you go as an advisor and also you say, ‘Hey, I do know you are in all probability speaking to another person, however this is an alternative choice.’ I feel it is an awesome alternative for mortgage officers to essentially differentiate themselves and produce worth over mortgage officers simply pushing that first.”
