Consumers NOT Using Rate Comparison Sites

10/20/2015
 
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Lending Tree has a new survey out showing that consumers will go out of their way to save $.10 on a gallon of gas before they will go to a mortgage rate comparison site on-line.

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Comments
  • EXACTLY!!!!!

    Marilyn Agee October 20, 2015 4:33 am Reply
  • Frank, I kept waiting for you to mention the Loan Officer and kept waiting and waiting and then you finished. The reason people don’t shop their loan is that they choose the loan, because they are comfortable with the loan officer and can trust him. They work with companies that make the process simple and easy to understand. People that are organized and honest and can cut thru the disclosures that they absolutely, 100% could care less about. They want their payment, closing costs and how much am I bringing to the table. All the piles of Government garbage is worthless to people that want the facts and nothting, but the facts and they want to know when am I closing? They trust us to not cheat them because we never cheated the previous 35,000 clients that came before them. They want to see Angie’s List or BBB. They want their friends that went thru us previously, to say it was the best loan transaction I ever had and then they are ready to go. That is called FREE Enterprise and Word of Mouth referrals. The Government has absolutely nothing to do with any of it and just gets in the way and causes massive hardship and delays to these people. That is how most people choose their mortgage. Our Loan officers are Professionallly Trained People, not call center lenders that the Government wants to create. That is why people don’t shop their rate, but TRUST us to alwasys be near the lowest in the market. It is that simple, no matter how much the Government is raising the cost and diminishing the service to customers.

    Bruce Calabrese October 20, 2015 5:20 am Reply
    • Bruce, that’s exactly what I said at the end of the show in closing. Guess you didn’t wait long enough! :) Have an awesome day man.

      admin October 20, 2015 5:38 am Reply
  • Consumers are asking people, friends, family, co-workers about interest rates. They are putting all that information together to decide where to go for a mortgage. If they are shopping rates online, it is to verify what they have been told. Didn’t LO/Broker Compensation take care of the issue of getting the best rate already?

    Travis Babbs October 20, 2015 5:44 am Reply
  • Especially after the last 10 years of foreclosures and short sales, a large number of buyers have “issues” to discuss and work around that require the help of a trusted advisor. Then there are all of us who are commission only earners and can’t just provide a W-2. We don’t fit neatly into the on-line site’s boxes.

    Michael Golieb October 20, 2015 7:31 am Reply
  • Pingback: Survey – Comsumers Stingy on Gas but not Mortgages? | National Real Estate Post |

  • Consumers who seek out a Loan Officer oftentimes do not fit into a neat little “box”. Many consumers seem savvy enough to know that whatever the website says MAY NOT be the final rate/terms in the end, based upon their particular situation and needs. The entire loan process is somewhat complex and an overly simplistic website may appear unreal (phony) to a consumer. Then websites will ask for too much confidential information, which makes a consumer uncomfortable. Worst of all, before the consumer has logged off, they start to get marketing calls aplenty, which can be irritating. Hopefully, Andrea has considered all of the above as reasons that consumers would rather shop for a new toaster, but not a loan for their home!

    Leslie October 20, 2015 10:37 am Reply
  • The statement “Consumers may be too focused on price or the monthly payment and fail to consider the lifetime cost of interest…” doesn’t make any sense. The monthly payment is a direct function of the interest rate, so how can it not be considered by a borrower when getting a mortgage loan? Furthermore, to state that the impact a 1% difference in an interest rate has on a 30-year mortgage loan “…can easily translate to thousands of dollars…” is the height of understatement! The difference between the total cash outlay over the life of a 30-year loan at 4% compared to one at 5% is $64,156, which would hardly be considered just “…thousands of dollars.”

    I believe that the reason borrowers are not comparison shopping online for loans is because it is much too confusing for them. There are innumerable ways to deceive borrowers into believing that lenders’ deals are the best, and, quite often; in the final analysis they turn out not to be. Of course, by that time, few; if any, borrowers want to start the entire loan process over again.

    Also, what they invariably fail to overlook, or ask about, is the cost of the their loans; which is as important, if not more important; than their interest rates. Just knowing a loan’s interest rate and not the cost, is like having a peanut butter and jelly sandwich without the jelly. You can’t have one without the other!

    Blake Kleckner October 20, 2015 12:12 pm Reply
  • The statement “Consumers may be too focused on price or the monthly payment and fail to consider the lifetime cost of interest…” doesn’t make any sense. The monthly payment is a direct function of the interest rate, so how can it not be considered by a borrower when getting a mortgage loan? Furthermore, to state that the impact a 1% difference in an interest rate has on a 30-year mortgage loan “…can easily translate to thousands of dollars…” is the height of understatement! The difference between the total cash outlay over the life of a $300,000, 30-year loan at 4% compared to one at 5% is $64,156, which would hardly be considered just “…thousands of dollars.”

    I believe that the reason borrowers are not comparison shopping online for loans is because it is much too confusing for them. There are innumerable ways to deceive borrowers into believing that lenders’ deals are the best, and, quite often; in the final analysis they turn out not to be. Of course, by that time, few; if any, borrowers want to start the entire loan process over again.

    Also, what they invariably fail to overlook, or ask about, is the cost of the their loans; which is as important, if not more important; than their interest rates. Just knowing a loan’s interest rate and not the cost, is like having a peanut butter and jelly sandwich without the jelly. You can’t have one without the other!

    Blake Kleckner October 20, 2015 12:14 pm Reply
  • If you’re of the mindset that consumers don’t want to research detailed mortgage information online, well, the ‘trend’ is not your friend. More consumers start their mortgage search online than any other time in history. That is not to say that comparative lead farm sites are the answer – I do however think that providing detailed offers on your own site, or sites that provide exclusive engagement with the consumer build trust with the online consumer and are highly converting.

    Adam Stein November 9, 2015 12:35 pm Reply

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