Phone rings, I answer "Mortgage Xperts this is Dan how can I help you?"
Customer "What are your rates?"
After being in this business for nine years and funding close to 300 million, eveytime I hear this I think of how uneducated the consumer really is.
The point I want to make hear is when to lock and when to float. On Monday I sent out many loan offers and advised my clients to get there loan submitted in and LOCK! Once again on Wednessday when the market improved even more I recommended to LOCK.
BUT NOOOO!!!! every one is calling me back today and asking if they can get Wednesdays Rate.
What does it take to get consumers to understand that Rates are quick to rise and slow to improve. With the recent honeymoon we just had I did have a few clients take my advise and LOCK.
The only thought that comes to mind with the ones that didnt LOCK is GREED!!! As the old saying goes, "Get greedy get Caught."
This year I have came up with a line that helps get consumers off the fence.
I tell them this. " If you lock today there is a 70% chance that rates will go down tomorrow, However if you don't lock today there is a 90% chance that rates will go up!"
This may sound confusing but as history has shown us it is 100% true to the fact that no one knows what is going to happen tomorrow all we can do is use yesterday as a benchmark as to what to do today.
Daniel Pettigrew
Director of Financing
Mortgage Xperts
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