How to Sell a Refinance Instead of A HELOC | Loan Officer Training 

Sure thing! you can also jump on a private mentoring call with me on zoom, keep the recording and focus on exactly what you need my friend. Start by downloading my free script at www.SalesRemastered.com

thanks for the request, I see its much needed based on views and likes - keep 'em coming

Amen.

Great question...the point here is YOU are not the one making the decision or justifying the importance of that cash, it has to be in line with THE CLIENT....so if that $50k for example was to bail out their son, what do you think they would be more focused on? More realistic example...if that $50k was to pay off debt that is currently keeping the entire family in fear, constricted and worried...what is THEIR perception of the value of that cash? The bottom line is this, if you continue to serve from a logical standpoint, your logic may not be in line with theirs...the bottom line is do they need the result and will the result regardless if 5% or 9.99% improves, saves and gives our client the safety, sanity and protection they desire...WHO TF ARE WE to make the decision for them? We are problem solvers NOT cpa's. Hope that helps Mr. Home Loans.

@@SalesRemastered we are licensed to give people options though. If they’re calling in to you for a HELOC and you can’t offer it, maybe it’s compliant to dance around the question but you really are pushing ethical boundaries taking an entire application when your client thinks they’re going to get a quote on a HELOC when you finish up. Their initial logic was to get a HELOC and now you’re reshaping their thought process to push them to another product. If you can provide the value to close quicker and meet a need that’s worth possibly $100,000’s of interest, that’s fine. I don’t think we’ll agree on this though. We’re in sales and can shape conversations to make a sale. These people know very little about home financing and count on us to guide them. We aren’t financial advisers but we can help people make more informed decisions by educating them.

@@101realtor I never encourage misleading, that is why I ask at beginning if they need the cash out, I cannot control nor condone the marketing some companies have, but I do get this question a lot. I personally do not market this btw. BUT...if it turns out they need the line for future use, then of course DO NOT sell cash out...but if they do need cash for justifiable cause WHY would you sell an adjustable rate in a rising market when the borrower will be held against an adjustable rate that does not better their position overall? make sense? I will always do right by the client and always preach that...I am not trying to teach how to 'swindle' consumers cause I don't move that way...hope you get that by now if you've seen my past content. I'm with you...BUT...I also know the circumstance at hand...regardless if they have a 1.99% fixed, if my service can give them peace of mind and a better quality of life its NEVER the rate its the results of the service.

@@SalesRemastered I understand what you’re saying. No disrespect meant by my comment. Slight difference on opinions and we’re all going to conduct our business on different ways. I enjoy the channel and the perspectives. 👍

If I had that info up front, I would tell them that the minimum HELOC amount is $100K. If they still want it, I will take an app and ask disqualifying questions that steer them into a cash out. I would see if their score is less than 680, ask when they last had their home up for sale and try to calculate their DTI at under 43%. If all that checks out and they actually have the assets to pay off the HELOC before it adjust and the numbers make sense to do a HELOC, I’d refer to my buddy that can offer HELOCs at the brokerage, however, I’ve noticed that about 4 out of 5 times, they trip up along the way and are better equipped to do a cash out or nothing at all. Also, they’re just gonna roll it into a cash out anyway when they realize that after 4 years they’ve been paying interest only on that HELOC and the balance is still $50k. They hardly ever pay it down in that fixed period like they say they will. I believe the ethics part comes in when you actually have to offer a HELOC because thats the product that they’re best qualified for but you don’t have access to one or have one to offer. I’ve taken a full app and sent disclosures for a client that was actually expecting a HELOC when I did a cash out. I don’t condone this at all but at this point, here is what you do when the jig is up. “Mr client, you seem like a reasonable guy and it seems like you like to make well informed decisions based on facts. I understand you want a HELOC but the reality of this is a lot of banks have discontinued HELOCs because of the sheer risks involved and it’s just not a product that a lot of clients qualify for, so let’s do this. Go shop for a HELOC. See what’s out there for the next couple of days and on the off chance you don’t qualify for a HELOC or if my numbers make more financial sense then you don’t have to waste anymore talking to anyone else about any other options and we can move forward. Sound fair?”

Read thread on Mr Home Loan comment above 👆

Agreed. I also do what is best for my client and right now a fixed second is a good option.

@@osocreekmortgage9814 it all depends on the clients perspective is the point, not ours but so long as you’re serving not selling more power to you my friend thanks for the feedback and hope my content helps