Time to look at MI

Now is the time of the year I have my people focused on their business plans and the tools and strategies they will be bringing into the new year. One of the things I am pressing my clients to look at is the use and all the options surrounding MI.

MI companies have been doing a great job listening to the market and evaluating how MI pricing can be used as a tool to really help originators provide options for their clients to reduce total costs and monthly payments. If you haven’t spent some time talking to ALL your MI representatives about how their products, programs, and pricing can really help the payment shock of rising interest rates.

Another important thing to think about is how to use these new MI programs with your Realtor® referral partners to help make stronger offers and help Listing Agents and Sellers move properties more effectively.

Price reductions are nice, but could sellers see a lower cost and provide a bigger benefit by providing for seller paid MI? Take a look at your local market and run some numbers, would a $5,000 or $10,000 price reduction be more beneficial to the buyer than that same money or LESS MONEY, paying for the buyer’s mortgage insurance? How would the numbers compare on monthly payments? If you don’t do the work, you won’t know.

Another important concept is to understand each MI Company’s rates on LTV as well as credit score. These two factors can become very helpful if you just look. We often help people improve their credit scores and down payments to help qualify for certain loan programs, why don’t we do the same thing to help our clients save really big money by reducing the cost of their MI?

Buyers and sellers have become price and rate conscious, but often focus on numbers that are large and abstract. As mortgage professionals, we must focus on the reality that rates are still historically low, and that payments are much more important than price! Remember, interest rates are going up, but in most parts of the country, rental rates are rising even faster!

So take some time and connect with your MI representatives and talk about how MI pricing and programs can really benefit your local market by helping reduce the overall costs and affordability of homeownership!

Questions or comments: Mike@IMTcoaching.com

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Mike White

Improve My Tomorrow Coaching is a company founded by Michael F. White to help mortgage professionals reach their true potential. Based on a belief that working the fundamental principles of the loan origination business combined with a solid system to leverage your day to day business into a self sustaining career! If you are looking to generate consistency in your business, you need to know and implement the fundamentals. Once you know what to do and when to do it, being a mortgage professional is fun, challenging, and profitable. Since the average loan originator in the country closes less than three loans a month, the average originator is unaware that closing seven, ten, twelve or more loans per month is often easier and less stressful than just two or three! If you are tired of the pain and punishment of not knowing where your next deal is coming from; if you spend more time being “busy” instead of “productive”; you need to look and see how we can help you get to a whole new level of business. Take some time to explore this website and read all the free information. If you find some things that cause you to rethink how you are currently doing your business, let us help you! It starts with YOU! There are two programs you can choose, a group program and private coaching. Please look at both before you make your choice.

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