The Mortgage Industry’s Binary Problem

Do you have a Higher Calling to share? Why do you solve the problem we’re facing, and what impact do you see it having on our society? Please share HERE.


By PATRICK BOYAGGI

In order to keep up with today’s on-demand economy, companies are innovating and evolving faster than ever. Consumers are getting access to better products and services, and paying less for them. So why is it that people are still financing their homes the same way that their grandparents did decades earlier?

One reason the mortgage industry has failed to innovate is because of what I refer to as the industry’s “Binary Problem.” Specifically, this is the mindset that in order to get one thing, it has to be at the expense of another. For example:

  • If you want speed, then you have to pay higher costs
  • If you want high touch service, then you have to interact with a human
  • If you want low rates, then you can’t expect a personal relationship

This mindset has pervaded the industry for years and is the excuse offered up by mortgage lenders in order to justify assigning a fee to every aspect of the transaction. Moreover, because getting a mortgage is an infrequent occurrence, mortgage lenders are able to position themselves as “experts” and consumers feel resigned to accept their offerings.

The time for change has come, though. We’ve learned from other industries that the outcome does not have to be binary. Moreover, technology can serve as the great equalizer, allowing innovative companies to create products and services that let consumers “have their cake and eat it, too.”

RateGravity is redefining how consumers finance their homes. Here’s how we’re doing this:

  1. We’ve eliminated the need for the mortgage salesperson whose commission drives up borrowers’ interest rates by as much as .50 percent. Our software allows consumers to bypass the salesperson whose role as gatekeeper costs the consumer tens of thousands of dollars in excess interest.
  2. We make it simple to search for personalized rates from multiple lenders. These are not generic quotes, but instead firm offers of credit that are personalized for your specific transaction. Today, three out of four consumers apply with just one lender, which means they often miss out on securing a loan with better terms.
  3. We partner with local lenders that are highly regarded by consumers and realtors. All of the lenders in our network return the savings that come from partnering with RateGravity back to the consumer in the form of a lower interest rate, saving tens of thousands of dollars.
  4. We bring transparency to what has been a historically opaque industry. We use our independent position to provide personalized and unbiased educational content. Traditional mortgage salespeople are incentivized to prevent shopping and promote their “expertise,” not do what is best for the consumer.
  5. RateGravity is paid the same fee (0.25 percent of the loan amount) by all lenders in our network. This allows us to negotiate and advocate for the consumer without any bias unlike the existing model where the consumer has no insight into how much the mortgage salesperson is paid.

Consumers deserve better and RateGravity is offering a new way to finance your home.


If you’d like to experience it for yourself, you can go to rategravity.com. To complete your profile online or speak with a personalized mortgage concierge who will help facilitate your experience.