More and more banks and credit unions offer monthly budget planning tools as a free service to their account holders. Could it be that budgets are *cough* “fun”? According to one website, some people even consider budgets “sexy.”
Making Budgets Sexy
Ah yeah. How to make budgets sexy. Budgets are a way of life. Think of these oft-heard phrases, that you likely have also said yourself:
- “Budget is tight”
- “It’s not in the budget.”
- “Champagne taste on a beer budget”
- “Shoestring budget”
- “Budget surplus”
And what is a budget really? Simply, it’s where the amount you make pays for the things you spend.
Work With the Budget
Advertisers know exactly how to entice those people who are very mindful of money going in and out of their bank accounts.
A friend of mine at work never considered buying a house after renting for 20 years. Then an ad showed up on his doorstep that read, “If you make more than $13 per hour, you can afford this house.” This was back in 2000.
He decided to call the number on the ad, and can you believe this reclusive hermit of a man did the unthinkable? He called the number on the ad to inquire about purchasing a home. Then he bought the home!
What changed his mind? It all came down to his budget. Once he could see that a mortgage could fit into what he made, he was all on board.
GOLDPoint Systems has software designed to help you tap into those budget-conscious mindsets. We have one of the most incredible loan estimate calculators on the market today. It can consider any fees, add-on insurance, how long the customer wants to pay on the loan, and with a quick click of a mouse! The actual price of the loan, including month-to-month payments, is there. You can even print it out and hand it to the potential customer.
How Does This Play into Budgets?
Customers can feel uneasy about the price of something. If they’re like me, the price of something can seem overwhelming and you start comparing how your first car was less than the cell phone your daughter really, really wants. And you may start to sweat and do that thing where you rub your forehead and look down and say, “I…just…don’t…know.”
But if a customer hears instead:
“With our low introductory rate, you could pay off the loan in 24 months with a price of only $24 a month.”
That makes customers think:
“Really?! I just need to bring lunch from home for a week, and I can pay for that! Where do I sign?”
Payment Calculator
We call that hero-like budgeting tool: Payment Calculator.
It’s the brains behind our loan origination system.
Payment Calculator can calculate and show an amortization schedule based on the amount of cash the customer wants or the monthly payment amount the customer is comfortable paying.
If the customer wants to see what their monthly payment amount would be if the loan was extended by a year – no problem. Enter the new criteria and see what the new payment amount would be.
What if the customer would like some add-on insurance to help protect the purchase? Check a few boxes and the salesperson can quickly show the customer that adding on insurance would only increase their payment amount by a few dollars.
When the customer is satisfied with the payment amount, the amount calculated is saved, awaiting final signatures and processing.
This is just one of many tools GOLDPoint Systems offers to create a better borrowing experience.
