Because his goal is to help the customer in the long run, and not just to close a loan, Byron said sometimes customers go elsewhere because they see the short-term benefit and chase it instead.
“I’ve literally lost loans,” he said. “I’m like, ‘Listen, you’re our state trooper, and I don’t think it’s a good idea to put you into an ARM because your job only lets you work 20 years. So if you get hurt on that job, how are you going to refinance it? Or if you have a dramatic loss of income, how are we going to get you out of that seven-year ARM?’
“On the other hand, they have personal goals. They have a wife and kids, and they want to buy this house. So I’m like, ‘All right, we’ll do it for you,’ but I try to talk them out of it. Credit unions are being very aggressive with ARM products. Home prices are still rising, which is a good thing for most people, except for the people trying to get over that entry-level barrier to get into houses.”
Sticker shock
As home values continue to rise in Byron’s area, it becomes increasingly difficult to find affordable housing.
“We were looking for a couple the other day, and the cheapest home that we could find that they were able to live in was $375,000,” he said. “We found a double-wide trailer for $275,000. I said, ‘I wouldn’t live there for $275,000. I’d keep renting.’ It’s unfortunate, especially in Rhode Island, which is very condensed. It’s a small area, so there’s a lot of competition. Massachusetts is a little bit different, but the home prices there are so much higher as well.”
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