How I Handle “Your Rates Are Too High” Objections
Every Loan Officer has heard it: “Why are your rates so high?” It’s a common question that can be a real moment of truth in a client relationship. Here’s how I approach this objection to help clients see the bigger picture and feel confident in their decisions.
1. Acknowledge the Concern and Diffuse the Tension
- When a client asks why the rate is higher, I start by genuinely acknowledging the question. It’s natural to compare, and I want them to feel comfortable talking it through.
- I’ll say something like, “That’s a great question! I’m glad you asked.” This lets them know I’m listening and ready to help—no defensiveness, just openness.
2. Dig a Little Deeper: What’s the Basis
- Next, I’ll ask where they found the rate and what it’s based on. Ask something like: “What have you seen?” or “What research have you done?”. I want to understand their perspective, and often, clients start to realize they don’t have the full story.
- A question like, “What rate are you looking for?” can be enough to get them to clarify. This approach keeps things on track and helps them feel more informed as we go along.
3. Show a Realistic Comparison
- I might pull up resources like MortgageNewsDaily.com or Freddie Mac.com to show how lower rates are often tied to points or other conditions. I’ll say, “Let’s take a look at what’s out there,” and guide them through the different rates they might be seeing.
- I may ask if they’ve heard of Rocket Mortgage – and of course they have. I then explain that they’re the #1 lender in country and they do that is great rates. “Would you agree with that Mr. Smith?” Then show them www.QuickenLoans.com/mortgage-rates. The dropdown shows the 2+ points they charge when someone with good credit puts down 25%.
- Many times, clients see a headline rate and don’t realize there’s fine print involved. Walking them through these details shows them I’m not just pushing a rate—I’m focused on getting them the right fit.
4. Guide Through Questions Instead of Explaining
- Rather than diving into explanations, I ask questions to let them work it out on their own terms. For instance, “Would you be okay paying an extra $5,000 in closing costs if it meant a lower monthly payment?” Questions like these make it easier for clients to see the trade-offs without feeling overwhelmed.
- This way, they’re not just hearing my opinion; they’re realizing what matters to them and taking control of the process.
5. Reinforce the Value Proposition
- When it comes to rate comparisons, I make sure to share the unique value my team and I bring to the table. “People work with us because we’re here from start to finish. We don’t just set a rate; we set you up for the long haul.” This helps them understand they’re getting more than just a rate—they’re getting reliable, full-service support.
- By the end of the conversation, they know exactly what to expect from us and why it’s worth it.
6. Bring in the Unique Selling Proposition (USP)
- To wrap up, I bring it all together with our USP. I let them know, “If you’re looking for a partner who’s here to help you make a great decision, you’re in the right place. That’s what we do best.”
- I always leave the door open for questions. “If there’s anything you’re curious about, feel free to reach out anytime.” It’s important that they know I’m here to support their decision-making process without any pressure.
Final Thoughts
At the end of the day, handling rate objections is about more than just numbers. It’s about showing clients they’re valued and empowering them to make the best choice for their situation. When they see the full picture, they feel good about moving forward with a team that truly has their back.