Improve your mortgage sales performance with airSlate SignNow's user-friendly solution

How to create outlook signature

what's up everybody welcome back to cells remastered in this episode I'm gonna tell you how to sell a higher interest rate so as loan officers were always faced with that dreaded question what's your rate well I was quoted this rate by a broker and this other lender down the street from me has this interest rate can you beat them you know I heard a radio advertisement but they didn't hear the disclosure that said that you could give me X pricing and not want to make sure that I get that today I don't want to pay no costs I don't want to answer your questions just let me know can you do it in 14 days or not you know these are just the outlandish requests that we always get and so I'm gonna share with you how to sell a higher interest rate now at the very beginning of any sales conversation you know you have the option to dive right into pricing and start you know aggressively negotiating price at the very beginning but you may be missing out on some key factors that is going to help you sell the pricing keep in mind that when a prospect asks you for a lower rate what they really are saying is that they just want to lower payment and now it is our job to find out what their intent is with the savings from that lower payment now here's the thing is that when you go through your conversation they might make outlandish requests like Daniel I can't I'll only say yes if it's a 2.99 I'll only say yes if it's a 3.25 whatever they say you have to learn how to deflect that but keep the direction moving forward don't feel the temptation to jump into negotiation you're not going to do yourself any good if you try start selling the loan or start selling interest rates or pricing at the very beginning before you know what pillars that they use to hold up the reason why they're even going to buy you from you to begin with and so their pillars what I'm talking about it's kind of like the whole thing that's framing up their whole intent to buy and you're not going to understand what their whole intent is to buy whatever product or service or program or interest rate or fees that you're selling unless you understand what these pillars are and so the pillars are for example if they say want to lower rate well the reason why they want to lower rate is because they need monthly savings so that becomes a pillar and now the monthly savings is going to lead to something and it's our job to find out well what's your intent to use that monthly savings and then they're gonna tell you what the other pillar is so my intent to use that monthly savings is so that I could pay off credit card debt and now you found another pillar right okay well with the monthly credit card debt how much are you spending now on this credit card debt and so they're gonna tell you from that pillar to another pillar and say well I'm spending about five hundred dollars per month now it's all coming together but you wouldn't understand all these intense or what their true desires were if you would have immediately started jumping into negotiating rate and fees it's not the rate or fee that you should be worried about it's whether or not you can extract the right information in the conversation so you can identify what these pillars are for your prospect and so when they tell you that they need extra savings to help pay their credit cards off because it's currently eating five hundred dollars of their monthly budget right now you can now create the fourth pillar and say currently right now mr. Jones after all your bills are paid after the five hundred dollars in credit card debt after all your expenses your utilities your car your gas after everything's paid mr. Jones how much of your net income do you have left they're gonna tell you oh I've got three hundred two hundred dollars and when they tell you that say mr. Jones of that two or three hundred dollars that you save per month how much of that is going in the bank and they're gonna tell you I probably got fifty dollars and so what this is telling you is that mr. Jones is looking more for just a lower rate he's looking for a way to live and way to survive and that is what we need to focus on but we can't find out these pillars if we choose to start selling rate and fees at the very beginning of conversation so you'll notice that on your sales floor most of the loan officers who do succeed are those who take efficient loan applications I just released a video on how to efficiently take and conduct a 10:03 conversation so be sure you keep that out I'll leave a link below in this video so it's easy to find but keep that in mind so the question is how do I sell rate and fees so in this example mr. Jones said I want a lower rate and mr. Jones have said some are just insane and straight that is not available in the market let's just say 3.2 530 are fixed this was his immediate request right and this is what we hear a lot we hear this often but the truth of the matter is that mrs. Jones is not just ensured in the lower interest rate the 3.25 that comes out of his mouth is because that's the advertisement he remembers seeing and so he's just going to say 3.25 but as loan officers we need to change the way we hear this instead of thinking he wants a lower rate we need to understand he just needs a lower payment and so mr. Jones shares with us what would he do with the monthly savings the monthly savings would go towards credit card debt and so now I need to figure out how much in monthly savings does he need in which we did because we found out how much total credit card debt yes so he already said he spends $500 a month just on credit card debt now of course we're gonna find out that this is probably good let's say 25k in credit card debt mr. Jones is ultimately looking for help to pay this $500 in credit card debt he's not he's not necessarily looking for a three and a quarter he just needs an answer a solution to the $500 in credit card debt now mr. Jones current payment his payment now on the mortgage and I'll give a realistic example so let's say his current payment on the mortgage is $2,500 piti however you want to take it and after the refinance he's looking to for payment of 3000 I'm sorry 2000 Altima Li right so he's looking for $500 in payment savings to offset the credit card death now in this refinance if we did not try and sell mr. Jones on rate and fees at the very beginning of the conversation we could then ask more questions and figure out what these other pillars are and so now we need to know what our pillars are it is mr. Jones even have the income there's even have the capacity the equity does he have the the right credit right is there any clouds on title things that are gonna interfere with our ability to pay off his current mortgage and possibly pay off the credit card debt so even though he's asked him for three and a quarter you and I now know that he's really just looking for a solution for the $500 in in debt so I figuratively he's trying to drop this payment from two thousand five hundred down to two thousand mr. Jones is not like us he doesn't understand mortgage like you and I so he figures the only way I can drop my payment down to two thousand is if I drop my interest rate and so I need a lower entry and this is why mr. Jones is asking for the lower interest rate but little did mr. Jones know that we can offer cash out refinance and possibly pay off all this credit card debt even though it's not three and a quarter and let's just say it's four and a quarter it really depends on how we go over that with mr. Jones right mr. Jones asked for three and a quarter how am I gonna sell this guy in Florida quarter this is how at the very beginning when he mentioned that he wants three and a quarter when you find out that he just ultimately wants a solution for the $500 in credit card debt we can offer him cash out the payoff $25,000 in credit card debt this would ultimately pay or remove $500 in liabilities from mr. Jones now because I know he pays $2,500 on his mortgage now I know if I combine these two with the payment deferral that all of our clients receive on a refinance they get to skip a payment I know that I've already accounted for $3,000 cash flow except Li that might account for all of your closing cost so if you need help in selling closing costs there's an alternative option for you but here's the thing is that when we sell higher rate and when we sell higher fees than what our prospects are looking for we have to really press on the solution right and kind of shift their focus away on pricing and costs and really just look at about the solution look how how positive of a change we're giving to our prospects budget right now so now if I'm able to save you $500 mr. Jones isn't that great but the problem is though is that we add this 25 thousand to his mortgage this payment is probably not going to change too much of anything it might even go up and so now he's just gonna be looking at this payment and the issue is how we get mr. Jones and say hey this is not your payment though you have to keep in mind that you're paying currently right now $3,000 I'm dropping this total $3,000 payment and let's just say I'm taking it to 2750 right and this is at the pitch time so reality is I even make it a little more challenging for you it's 2,800 right and that's what the $25,000 cash that's with all of our fees escrow and all that good stuff and so everything comes out to $2,800 so mr. Jones is now saying well Daniel you know I'm I was coming in to drop my payment of 2,000 you're telling me you're selling me $2,800 no mr. Jones right now you're you're currently paying $3,000 so I'm gonna drop that total payment at $2,800 and I'm gonna save you $200 a month you no longer have this $500 payment now the challenge is how do I get mr. Jones to get over this $2,800 payment because he's used to sending 2500 to the mortgage company he's not used to sending 2800 even if mr. Jones doesn't understand that he's not spending $500 any more to his credit card companies and even if he doesn't understand that there's a $200 a monthly savings well mr. Jones does know and will understand is that this is all just a stepping stone and so now what I do is I look at how this credit card debt may have affected mr. Jones right now and so I'm going to find out that because he's been juggling all this debt that $500 really ate away into his savings you know mr. Jones has kids mr. Jones has a stay-at-home mom or stay home wife and mr. Jones also needs to buy all these other things and these other random events that he has to conduct for his family whether it's vacations or whether it's you know braces or a new car or their current car broke down and so they needed a new ride or they needed a new fix there's just these other things that we don't expect that comes in and could have eaten everything alive this probably where most of the credit card debt has come from to begin with and so when people have this much credit card debt they don't necessarily have as much money in savings and really now that's where our focus is is that mole mr. Jones this $25,000 in credit card debt really ate into your savings you had mentioned to me in our initial conversation that you don't really have much left at the end of the month as a matter of fact if I remember correctly you said you only have $50 left at the end of the month this is very risk phul considering that you're responsible for a stay-at-home wife and also your kids this is also very risk vil because if for whatever reason you didn't make a payment or you had another emergency you only have $100 in your bank to cover a total of $3,000 in debt and that doesn't even include your expenses or your utilities or the braces for little Julie you know you have to now shift the focus on top of that mr. Jones says $25,000 in credit card debt did a number on your credit score it actually weighed you down a little bit and so after we pay off this credit card debt and after I create $3,000 of a media cash flow plus your escrow balance of let's say another 2,000 I just turned your bank account balance from 50 bucks it's a $5,000 of immediate cash flow now if you're asking me mr. Jones is it worth doing it absolutely only because I've seen so many people go down your path and choose to stay in that path and then they'll call me six months later when the market increases and it's always just too late but don't have to endure all the pain and the frustration and the emotional tie to this this juggling of all this debt I have a solution for you here's the upside after we do all this debt consolidation and I free up this 5,000 I'm going to increase your FICO score in the next six to twelve months we'll go ahead and look at your options again at that time you should have X amount of money in the bank you should have an X amount FICO score and you should be able to consider other options or shorten the term versus having 29 years left or 30 years left on a mortgage I'm going to show you how to rehabilitate your credit score and your budget and your assets so that when we talk again in six to twelve months we'll go ahead and look for that three and a quarter then and that is how you sell a higher rate and fees leave your comments below I'd really like to know your put let me know what your takeaway was in the sales conversation or this example let me know if you're currently using these strategies a common miss strategy that I always I never really hear but I I know as always being missed is the payment deferral and escrow refund that can do very powerful things for you at the end of a pitch because homeowners they're just not expecting that they're going to come across this influx of cash and so you can use this three thousand and two thousand dollar escrow refund as means to pay for the holidays right like hey you know this could pay for everything that you bought at Christmas could offset whatever it costs that they're incurring or use that to pay the cost of the refinance in exchange they'll be able to pay off all this credit card debt remove a lot of the weight that's on their shoulders right now and you look like the Savior more importantly you just set yourself up for another refinance business in the future so you're going to be able to rewrite that loan program in no time so if you have any questions please leave your comments below I'd love to know your feedback and if this is your first time watching cells remastered consider subscribing hit the bell and make sure you get that notification of any updated live content that's coming and and will be available and also any topics that I do release on a daily basis you'll be able to give first notification so that you can identify whether or not it's going to help you at that given day or with that given task I appreciate your time and watching the channel I see your support and I humbly appreciate you for watching I'll see you in the next video