Why is Quicken pushing 15 year mortgages?

[Ryan Taft]

Maybe the motive and reasoning is clear to someone else, I'm a bit stumped. Why is quicken pushing 15 year loans? (I keep getting ads from them). Is this some sort of speculation that between inflation and interest rates rising they will be losing money, or margin anyway, to keep handing out 30 year mortgages? Thanks for the feedback in advance! 

[Chris Mason]

Originally posted by @Ryan Taft:

Maybe the motive and reasoning is clear to someone else, I'm a bit stumped. Why is quicken pushing 15 year loans? (I keep getting ads from them). Is this some sort of speculation that between inflation and interest rates rising they will be losing money, or margin anyway, to keep handing out 30 year mortgages? Thanks for the feedback in advance! 

Most people will not qualify for a 15 year term, the P&I payment is ballpark 50% higher and their DTI would jump from 42% to 57% (or whatever). But it got you on the phone for them to pitch you something you do qualify for, didn't it? That's the bottom line in general for paid online mortgage marketing, which Big Red is known for being absolutely phenomenal (but not cost effective) at.

Quicken retail (when you call them directly) has some of the worst interest rate pricing (ie, highest gross profit margin) out there. Quicken wholesale (when you call any mortgage broker) often, but not always, is among the best priced. The difference is that the former must pay for the marketing budget you speak of; the latter has that fat cut out.