Tom Davis (pictured high), chief gross sales officer at Deephaven Mortgage, was shocked to see a current financial institution survey exhibiting what number of householders have been utterly unaware of dwelling fairness merchandise.
“It was one of many high 10 banks in the US, and of their survey, it mentioned like 35% of their mortgage debtors didn’t know dwelling fairness merchandise existed,” Davis informed 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 possibly can name out those that are solely making an attempt to supply them a refinance.
“As an advisor or a mortgage officer, you need to current each,” Davis mentioned. “You’ll be able to say, ‘You possibly can do a refi money out in your first, however you are going to lose this 2.5%, 3% mortgage price that you’ll by no means see in your lifetime once more, greater than doubtless. Or you would hold that, shield that proper. That’s an vital asset: low-cost cash. After which you would do a second lien for the quantity that you just want at this price.’
“And if that borrower is speaking to another person a couple of first lien, and so they’re solely giving them one possibility, and also you go as an advisor and also you say, ‘Hey, I do know you are most likely speaking to another person, however here is an alternative choice.’ I believe it is an important alternative for mortgage officers to essentially differentiate themselves and convey worth over mortgage officers simply pushing that first.”
