What’s in a Name?

One of the ways that I was able to sell the plain old vanilla, fixed-rate mortgage was by showing clients the difference between a 25-year fixed rate and a 30-year fixed rate (which my competitors quoted).  I “branded” it the “Equity-Builder Loan.”  (Just run a couple of amortization schedule comparisons and you’ll see what I mean.)

So, I wanted to share a couple of other “branding” monikers that you might consider using:

Second-Time Homebuyer Program: It’s a concept where you are marketing to a niche—the second-time homebuyer.  They usually have a home to sell (with hopefully some equity for a larger down payment), and they are easier to work with because they have gone through the mortgage application process before.  Offer a 20- or 25-year fixed rate mortgage and illustrate how they can build up equity faster—even though the monthly payment may be higher.  The truth is that a majority of them will opt for the 30-year fixed rate—but you have shown them how to build equity.

Second-Chance Mortgage: If you do FHA loans, this one is for you.   FHA recently said that a job loss or 20% income loss can now be considered an “extenuating circumstance.”  Yeah, there are lots of “rules” that go into getting someone approved, but this is a great term for you to use in marketing the new rules to consumers and real estate agents.  

Second-Opinion Lender: Just like someone who is going to have major surgery, you’d probably want to get a second opinion.  Branding yourself as a “second-opinion lender” gives you the opportunity to take a second look at a borrower’s loan application and determine if the client is getting the best deal, including how the loan is structured and whether it meets the underwriting rules.  Also, as a second-opinion lender, you are in a position to review files that might go “south” with another lender.  

So, would you mind sharing the names you have given to loan products or niche markets?