A professional couple had called me this week to discuss a potential refinance. They were considering maybe a collateral mortgage with a line of credit component. I began with open-ended questions to narrow in exactly what their needs were. He was unsure. Then, they wanted to talk about rates. Needless to say, this can be a stressful discussion on both parts until we discover the exact product they are selecting. When I suggested a range of rates, he shot back that the online rates were much lower. This is a conversation I have almost daily. Clients get quotes for only the lowest rates. Are they correct? Partially. We as consumers always look at the lowest prices as rates. I begin to think maybe I can help clients understand the good and the bad of internet mortgage shopping. At Robert Floris’ Mortgage Architects office, we want you to know what is best for you.

Positives of Online Mortgage Rates Sites

1. Good place to start – if shopping at least it educates where rates are possible.

2.Excellent for clients who are well-qualified. This seems easy, but they will have the best access to the best rates.

3. Great alternative instead of traditional banks – better choices means more competition and better rates.

4. Better for educated clients – many clients who call our office really believe they will get the best rates. However, many factors go into what is determined for a low mortgage rate.

5. Lots of excellent choices in terms of lenders, products and features-this helps the clients customize their mortgage needs

6. Some lenders, specifically credit unions, do not use the stress test -this really helps clients who cannot pass the stress tests.

7. Do not try to cross sell other products – needless to say, the banks have tried to cross sell everybody and now our country is deeply in debt.

Negatives of Online Mortgage Rate Sites

1. Rates can be misleading – yes they do quote the lowest rate. However, in many cases they are high ratio rates. For clients seeking a transfer or refinance, the high ratio rates do not apply.

2. Lack of service – online rates base their ability to do volume and unfortunately service and building rapport suffers.

3. Lack of education – I say this with a caveat since ratehub, ratespy and rate supermarket do a good job of content information. The problem is many clients are not aware of any potential speed bumps they may have.

4. One size does not fit all – Not great if you are self-employed or have poor credit when looking for low rates.

5. No planning involved in their mortgage plan – we ensure that before we talk rates, we talk needs. We go the extra mile and truly improving lives and teaching money education.

6. On your own after the transaction – service should be provided before and after the mortgage has been funded.

The irony of the mortgage sites is that all mortgage brokers basically have access to all the rates. It is our belief at Robert Floris’ Mortgage Architects is: why not have everything for a much better customer experience?