As a mortgage loan originator, you need to provide your clients with value. When you offer them value, your clients will be more likely to use your services again and recommend you to others.
The question that you should be asking yourself, then, is this—what can I do that will help my clients? We’re talking tangible value, here. What is it that your clients value?
For starters, you can help them save money, either on their next mortgage loan or on their current one. It’s as simple as sharing your expertise with them.
Not sure where to start? Here are some money-saving tips that you can share with your clients, past and present.
For those who are interested in taking out a loan for a new home, a lot depends on the health of their credit. Stress to your clients how important strong credit is in securing a desirable interest rate. A difference of a tenth of a percent might not seem like much, but over the life of the loan, that could add up to thousands of dollars.
Make Additional Payments
Your clients can also save tens of thousands by simply paying more on their mortgage each year. Making additional payments is one of the most effective strategies for saving on a mortgage loan. Not only does paying more than the minimum lower the amount of interest they will pay, but also that it will shorten the life of the loan.
Get an Accurate Mortgage Loan Comparison
As a loan originator, your job is to find your clients the best mortgage options available to them. Make sure they know how much work you are doing to compare loans—that is, show your work when making a recommendation.
Refinance or Recast
Right now, with rates at or near historic lows, mortgage refinancing may be an excellent way to save money down the road. Reach out to clients whose loans have higher interest rates than what is currently available. They may not even realize that refinancing may be an option. Imagine their appreciation when you explain to them how much they could potentially save.
Sometimes, however, your clients might have extra cash in their pockets. If that is the case, a mortgage recast could help them lower their monthly payments without affecting the terms of their loan. For borrowers with low interest rates, this may be an excellent option.
Here’s how it works.
First, your client must discuss a loan recast with their mortgage loan servicer to ensure that the servicer will allow the loan to be recast. Assuming that a recast is permissible, your client would then make a lump-sum payment toward the principal balance on their loan, typically at least $5,000. The balance is then amortized to reflect the remaining balance, and the monthly payments are lowered to reflect the new principal. If your clients want to keep their interest rate but want to lower their payments and lower the amount of interest they will end up paying, a loan recast might be a great suggestion.
Make Your Mortgage Loan Services Indispensable
Want to learn more about how wemlo can help you offer your clients the value they crave? Schedule a demo with us today.