See How Brian Kludt Uncovered a Loan Opportunity That 9 out of 10 Loan Officers Would Have Missed

This example is representative of the situation most loan officers are finding themselves in every day in this marketplace. Interest rates haven’t dropped enough to make a rate & term refinance obvious, so some LOs don’t think there are any worthwhile re-fi opportunities.

But the attached video blows that theory out of the water. Brian Kludt had a client with a fixed rate equal to today’s fixed rates. Sounds like there’s no opportunity there, right? But using a creative approach, Brian uncovered a loan transaction that delivered obvious tangible benefits to the homeowner that most loan officers would have missed.

How did he do it? Just click here to watch this quick 4 minute video.

KEY TAKEAWAYS FROM THIS VIDEO:

• See how Brian dollarizes both the short- and long-term value, making the savings relevant to the client’s goals and needs;
• See how Brian wins over the client’s trust enough to get them to sign a rate lock agreement;
• See how Brian makes the value of his advice obvious to the borrower.

Most loan officers and homeowners wouldn’t even consider this transaction because the short-term savings are low. However, when you dollarize the long-term savings, that’s when you really see the tangible benefits, and know that the timing is right and the transaction creates value for the client.

Watch Brian Kludt’s 4 minute video to see for yourself:

Read the email in which Brian sent the video to his client after a brief phone call.

Hi Mark & Berna -

Thanks for submitting your Mortgage Plan Review questionnaire - Please watch the attached link for my analysis of your current situation: 

http://screencast.com/t/2W9WWGa9

I'd love to share this illustration with Alison Gilman, Julie Braden and Schan Taxes as you had indicated they are a part of your financial "wisdom counselors" team I'm sure they would like to add their input if need be- If you're cool with that let me know and I'd be happy to forward to each accordingly!

Have a great day

Comments

[Sivanu]

Good job Brian. Brian if I may ask you, what is a mortgage plan questionnaire?

[Dimitrios Gikas]

I can appreciate the effort in helping clients as much as possible and I believe that is what you are trying to do, but that being said, the numbers in this demo are very misleading:

As great as this looks on paper..where were the closing costs (I guess we are to assume that this is a no closing cost loan?) Is this an IO 5 yr ARM? or 30 yr fixed IO? The monthly "savings" is mainly because of the IO (and the fact you are stretching the 2nd lien from 12 yrs into 30 yr AMM IO).

The other misleading part is the 25 yrs to pay off on current loan and 20 and change on proposed loans..the reason is proposed loans are using extra money from a loan that would be paid off in 12 yrs, if you applied the 300 bucks plus in years 12 through 20, their current structure would pay off in about the same time frame as proposed loans.

And the last misleading part is the 5, 10, and 15 yr comparison showing principle built up, says current loan is ZERO at each, but multiplies out the 212 times the chosen comparison point, their current loan HAS principle reduction, just because it is not IO with "prepayments" doesn't mean it is zero.

The reason a lot of us would have missed it, it there is very very very little benefit to actually doing it. I am surprised if you send this to a financial planner or accountant someone hasn't asked about "numbers" of this proposal.

[Brian Kludt]

Hi Dimitrios

Thanks for the feedback and comments. Your in-depth analysis appears to be based almost wholly in part on one huge incorrect assumption: The proposed loan scenarios I present are not IO loans. They are fully amortized 30 year fixed loans. Your comments forward appear to be based on your assumption re: IO so I won't comment further on the individual points you made about misleading elements.

Your assumption re: a no cost loan is correct; however, even with costs this illustration will still be relevant as Wisconsin is a relatively low closing costs state ($1500-$2000.)

[Brian Kludt]

Hi Sivanu -

Take a look at my web site www.briankludt.com and you can see my Annual Mortgage Plan Review Questionnaire

Good luck!