How brokers can help clients navigate a higher-rate market without waiting for relief
Shelton said the bigger shift is getting clients off the rate number entirely.
“I could tell somebody, ‘Hey, your interest rate is 3%, but your payment is $3,000,’” she said. “If they can’t afford or don’t feel comfortable with that $3,000, it doesn’t really matter what the interest rate is. We just shift the focus into reverse engineering what payment you are comfortable with and how we get there.”
While homebuyers could be in a position to refinance once rates drop, Shelton said she doesn’t want that future refinance to become a necessity to keep them within budget.
“If you’re comfortable with this payment now, then in 12, 24, 36 months, wherever that might be, if rates do come down, we’re only making your position stronger,” she said. “We’re not putting you in a position where you’re like, ‘Okay, I hope I can refi and save myself some bucks next year.’ That’s not my goal. My goal is to have you feel comfortable and give you more power later to save money.”
Expanding broker education
Shelton said the ability to build these creative structures depends on brokers staying current on products and guidelines. She said the advantage of working with a broker over a retail lender is access to a wider range of options.
