It Sounds Like Boiler Room, But Sometimes It's What You Need To Hear

John posted a comment on Thursday's post, Like A Locomotive, Mortgage Rate Increases Are Picking Up Steam.   

"I am thinking of refinancing but do not want to be rushed into anything? Are rates going to rise that quickly? Who would you recommend I sign a mortgage with that you would trust?"

This is a very timely comment so my reply will be this post.  Thanks, John, for the terrific question.

The absolute bloodbath that occurred in mortgage rates today is one that we see maybe once per year, if that.  There was a turn in sentiment that was amazingly sudden and mortgage rates got murdered along the way.  We knew it could have happened, but today was really something else.

By the time the dust settled, mortgage rates were off by 0.25% across the board.  It was seriously brutal.

The worst part about it was that I spent most of the day on the phone with my new clients trying to explain the urgency of the situation.  Even though each was referred to me from a trusted source like a client or a real estate agent, none know me well enough to know my style.

I can only imagine what I sounded like to them:

"Look, mortgage rates are running higher and they're gathering steam.  You need to lock your right now because if you don't, you will pay a higher rate.  And I'm not even talking about if you lock tomorrow.  You're going to pay it an hour from now."

Sounds like Boiler Room, right?  Well, when it's an urgent message, I don't how else to get my message across. 

I also tried email reminders about the market and then stopped just short of sending the Pony Express to their places of work.

From my vantage point, I am presenting facts and I am the one in the relationship with the live bond feed coming across my desktop. 

It's my responsibility to make sure that the client hears the news that I intend to deliver.

Now, the clients that have worked with me before and who know how I operate?  They all locked in before the real damage was done.  Each of them got their rates while the going was still (relatively) good.

The clients with whom this is our first dance?  Not one of them. 

I watched their dollars just float away while they looked at me as if I were a high-pressure salesperson.  It's really a shame.  I don't know how else to say "YOU'RE MAKING A BAD DECISION BY WAITING" other than to just say it.

Can I blame the first-timers for not trusting me?  It really does sound "high-pressure" -- regardless of the trust that we may have already built together.  Sad, but true.

One client in particular that didn't respond to my calls or emails no longer qualifies for the home that he is under contract to buy; his debt ratios were so precariously tight.  Now, he'll have to pay points to lower his interest rate so he can get approved.  That will cost about $3,500.

So, John says he doesn't want to get rushed into anything and that is understandable.  Nobody likes to be rushed to make decisions -- especially ones that deal with hundreds of thousands of dollars in debt. 

But, today was a day, though, in which "not rushing into anything" was very costly for a lot of people.  I am not going to ask for comments, but I am sure that every loan officer reading this post will have at least one similar story from today.

On days like this, John, you just need to know that you're working with a Trusted Advisor and you have to be confident in their willingness to look after you.  As for finding an advisor you can trust, ask around in your circle of friends, family and co-workers for somebody who fits the bill.