"Hey Andre...what are interest rates today?"
If you're in the lending business, this is what we hear...all day long.
To be fair, that's the question I asked lenders before becoming a mortgage loan officer.
I get it.
So, should loan officers answer that question by blurting out 6.21%, 5.97%, 4.367%
Or, should loan officers start by asking questions about the borrower's goals and continue the conversation with a consultative approach? 🎯
For the majority of our borrowers, interest rates are the only thing they know. Low=Good. High=Bad. Buy High, Sell Low. No, wait. That's my investment strategy...nevermind.
This article is not about sales tactics or strategies but a non-scientific look into what most borrowers CARE about.
My conclusion at the end could be wrong, but it wouldn't be the first time. "Right, honey?" (wife in the background: "Right!")
First off, there are borrowers who are math nerds and will question every line item on a Loan Estimate (LE) / Closing Disclosure (CD). I respect that. It's their money. It's wise to understand the charges & fees on an LE/CD.
What I’ve found borrowers care about most is: ✅ CASH FROM BORROWER.
Cash From Borrower is my main point.
Borrowers have $xx,xxx amount of money in their bank account.
After looking at the Cash From Borrower line item, reality sets in:
"We don't have enough $ to buy this house!"
"We won't have any money left over for repairs, upgrades, or new furniture!"
"We can only eat Top Ramen after we buy this house!"
To which I say to my borrower, "Yeah, but look at that sweet interest rate!" -Never 😆
Now, before any of you say, "yeah Andre, you can structure the loan so that Cash From Borrower can be rolled into the loan amount, minimizing or eliminating cash out of pocket" or "the Realtor can negotiate Seller concessions reducing or eliminating closing costs and/or Cash To Close/Cash From Borrower, Down Payment Assistance (DPA) programs"...yada...yada...yada. You're right! This is a Voce article not a 101 Class on structuring mortgage deals.
Again, my main point is interest rates are not the "primary concern" for borrowers but how much their bank account will be drained in obtaining their loan.
What empirical proof do I have? None. It's based on vibes bro'. We can agree to disagree.
Truth be told, the inspiration for this subject came from a CEO of a yuge mortgage company addressing this very issue. He was traveling recently and when conversations eventually led to "What do you do for a living?", he asked them what they cared about most when getting a loan.
Their response? How much is this gonna cost me?
In my experience, I have to agree.
What was their #2 concern?
Take a guess and tune in next week for my sophomoric article on this topic.
Love this one, Andre — the "based on vibes bro" honesty is refreshing in a space full of people pretending they've got regression models behind every claim. And you're right, which is the funny part: the vibe check matches what borrowers actually do at the table. They breeze past the rate and lock onto Cash From Borrower the second it hits the page, because that's the number that empties their account and decides whether it's Top Ramen season. The "buy high, sell low — wait, that's my investment strategy" bit got a real laugh, and the running "Right, honey?" gag keeps it human. Underneath the comedy there's a genuine point about consultative selling: if you lead with 6.21% you're answering the question they asked, not the one they actually care about. Starting with their goals and getting to cash-to-close is what separates an advisor from a rate-quoting vending machine. Nicely played leaving the #2 concern as a cliffhanger — that's how you get people back next week. My guess before the reveal: the monthly payment (what they'll actually live with) edging out even the rate itself. Looking forward to seeing if I'm close.
Thanks again Chad for your kind words of support. Monthly payment being the #2 concern for borrowers? hmm...