Discounted Rate Vs. Mortgage Product

I want to ask you the question, which is more important for us to consider when talking to our consumers: Is it the right mortgage product, or is it discounted rate? Most of the time, we all compete on rate … so the easy answer would be rate.

Or is it? Take a moment to think about it. When you do, you will probably agree that most of us will say the right answer is mortgage product. At the end of the day, we want what is best for the consumer. So why do we focus on rate instead of product?

We all lose to this strategy. We have to stop boasting about rate as our best “value-add” because it’s not. Someone will always have a competitive rate that you or I cannot touch without it costing us money or respect (and sometimes both). Let’s get away from the rate game!

I know of experienced referrals quoting rate and most of the time it is a “no-frills” rate that they heard of, and often this product doesn’t fit a consumer’s needs. I am not saying a “no-frills” mortgage is a bad thing (it’s just my example); as a matter of fact it fits a niche. I am saying that I would rather like to inform my client on the pros and cons of a mortgage without it being a rate consideration first.

The challenge is focusing on knowing our mortgage products. That forces us to educate ourselves. Once we understand those details that most of us overlook every day, we can start educating our referral partners, and that’s where it is really important.