Cashing In On Adjusting ARMS

From: Ameen Kamadia

A national survey of 500 ARM borrowers found that 73 percent don’t know how much their monthly payment will increase the next time the rates go up. The survey, which was conducted for the AFL-CIO labor union, indicates that borrowers are unprepared for the burden of higher payments. One in five borrowers don’t know their current rate, and 25 percent don’t know when their lender will raise the rate. "Predatory lending practices not only involve sticking consumers with bad loans, but also in failing to provide home owners with the basic information they need to survive in this market," AFL-CIO President John Sweeney said in a statement.

Source: Reuters News.


Let's make the numbers easier to understand.

·         One in five borrowers don't know their current rate. This was a shocker to me.

·         One in four do not know when their rates will go up.

·         About 3 of 4 don't know how much the payments will adjust.

This is great news!

Let's say you want to focus on refinancing these ARMs. Now you know the hot buttons. You know what these people are afraid of and you can target these problems.

Here's an example:

Warning to Anyone With An Adjustable Rate Mortgage.

Are your rates going up? Do you know when and by how much?

If no, then you need to start planning now. Contact Joe Smith at XYZ Mortgage for a Fast, Free, Confidential Mortgage Evaluation. Joe is a 15 year veteran of the mortgage markets and can make sense of your Adjustable Rate Mortgage and explain it to you in simple English.

There is no cost for this evaluation and it takes no more than 30 minutes. But Joe's time is limited and he only has 8 spaces left this month.

Even though the FED is lowering rates, your mortgage rates might still go up. Find out how much, when, and how much your new payments will be before it happens.

Call today, and Joe will give you a copy of his new Report titled, No Cost Ways To Fix Your Mortgage.


Here's an example of a press release you can modify and use:

AFL-CIO survey reveals 75% of ARM holders do not know how to interpret their adjustable rate mortgage.

According to the new survey,

·         One in five borrowers don't know their current rate.

·         One in four do not know when their rates will go up.

·         About 3 of 4 don't know how much the payments will adjust.

As a community service, Joe Smith of XYZ Mortgage has created a simple, free Adjustable Rate Workshop for those in the XXXXX area who are confused by their ARM.

The workshop will cover topics such as

-         How to understand the interest rates that ARMs are tied to.

-         How to determine how much your payment will increase

-         How to determine when your payment will increase

Homeowners are encouraged to bring their mortgage paperwork so that all their specific questions can be answered.

The workshop will be held on Tues, XXX at 8pm at XYZ Mortgage. Seating is limited. For more information contact Joe Smith at XXX.

Whenever you see or hear news like this, it is easy to use it in your favor. The common man on the street doesn't know as much as you know about mortgages. And he shouldn't have to. That's our job; to educate our clients and provide them with quality solutions to their problems.

Everyone says that a home is an investment. I am not sure that I agree but that doesn't matter here. Stocks are also an investment. And when you look at a stockbroker, they not only process your trades, but they provide you with research. They provide you with ways to educate yourself. We need to do the same thing. If you want to keep your clients and get their referrals you need to do what the stockbrokers do. They hold seminars on various topics. They release investment research. They provide their own analysis.

You can do the same. But it doesn't have to be so regular. People are not looking for the next hot mortgage product release. But you should be producing material to show your expertise.

Seminars should be part of your arsenal and well as a blog, tele-seminars, interviews, and recordings of all these items.

By staying on top of the news, you can use it to

a.      market your services

b.      educate your clients so they stick and refer.

Happy Originating! 




Add Your Own
Your Name:
Word Above:


Thanks for the Press Release.

Posted by Matt Greensburg on 10/30/2007 13:56:38

Awesome idea Ameen !!! Thanks for sharing the wealth. I have saved 90% of all your newsletters to usu them as a reference material.

Posted by Marlon Mendoza on 10/23/2008 08:47:24