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    actually is. It has lower lows and higher highs. Make sense?

    “Let me explain…no time…let me sum up…” [great line from the movie The Princess Bride], to be the best you can be, you’ll have to divulge both sides of the fence to the borrower. That being said, would the lower lows and higher highs be easier to sell if they were closer together? Translation: Less fluctuations going on? I would say it would, but there are cases for both the lower indexes and the higher indexes so make sure you do your homework and find

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    The Index, some would say it’s the heart and soul of the Pay Option Arm. Some brokers say it’s better to use an Index that has gone historically lower than others. Some brokers haven’t a clue as to what the Index is, so they just choose the one that has the lowest interest rate at the time of the deal they’re making. Other brokers say if payment is all the rage about the POA, wouldn’t it be better to use a lower index vs. a higher one?

    But it saddens me when I hear this because I know there really hasn’t been any thought being put into this whole process and the borrower will be the one to take the burden of this lack of knowledge. Brokers that only think one dimensional when it comes to the Pay Option Arm are either 1)New to the business; or 2) Just don’t get it when it comes the Pay-Option-Arm type products. I hate to be so direct, but sometimes I gotta hit you between the eyes.

    First, we have to agree with this statement…generally speaking, people DO NOT refi/purchase because they want a lower interest rate, people refi/purchase because they want a lower payment. If we’re not together on that one, we may have challenges with each other. It’s OK because everyone is different, but we can always be taught different things, right?

    If you want to be as professional and precise as possible, you have to inform your borrower of the good AND the bad of the “lower indexes”. And, believe it or not, if you truly “got it”, you know exactly what I mean. But, for those of you that still don’t “got it” but don’t want to admit it (trust me, that was me at one point as well), I’ll go into a bit of further explanation here.

    In terms of indexes and ARMs, what rises must also fall. So, if one Index is “lower” than another, guess what, it will also be “higher” at some point, right? I don’t want to state the obvious, but “duh!” So ask yourself this, if you think you’re selling someone because you’re giving them the lower index, how much referral or repeat business are you going to get when it’s the higher index? In other words, the lower the index, the less stable it actually is. It has lower lows and higher highs. Make sense?

    “Let me explain…no time…let me sum up…” [great line from the movie The Princess Bride], to be the best you can be, you’ll have to divulge both sides of the fence to the borrower. That being said, would the lower lows and higher highs be easier to sell if they were closer together? Translation: Less fluctuations going on? I would say it would, but there are cases for both the lower indexes and the higher indexes so make sure you do your homework and find o

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    hought being put into this whole process and the borrower will be the one to take the burden of this lack of knowledge. Brokers that only think one dimensional when it comes to the Pay Option Arm are either 1)New to the business; or 2) Just don’t get it when it comes the Pay-Option-Arm type products. I hate to be so direct, but sometimes I gotta hit you between the eyes.

    First, we have to agree with this statement…generally speaking, people DO NOT refi/purchase because they want a lower interest rate, people refi/purchase because they want a lower payment. If we’re not together on that one, we may have challenges with each other. It’s OK because everyone is different, but we can always be taught different things, right?

    If you want to be as professional and precise as possible, you have to inform your borrower of the good AND the bad of the “lower indexes”. And, believe it or not, if you truly “got it”, you know exactly what I mean. But, for those of you that still don’t “got it” but don’t want to admit it (trust me, that was me at one point as well), I’ll go into a bit of further explanation here.

    In terms of indexes and ARMs, what rises must also fall. So, if one Index is “lower” than another, guess what, it will also be “higher” at some point, right? I don’t want to state the obvious, but “duh!” So ask yourself this, if you think you’re selling someone because you’re giving them the lower index, how much referral or repeat business are you going to get when it’s the higher index? In other words, the lower the index, the less stable it actually is. It has lower lows and higher highs. Make sense?

    “Let me explain…no time…let me sum up…” [great line from the movie The Princess Bride], to be the best you can be, you’ll have to divulge both sides of the fence to the borrower. That being said, would the lower lows and higher highs be easier to sell if they were closer together? Translation: Less fluctuations going on? I would say it would, but there are cases for both the lower indexes and the higher indexes so make sure you do your homework and find

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    rchase because they want a lower payment. If we’re not together on that one, we may have challenges with each other. It’s OK because everyone is different, but we can always be taught different things, right?

    If you want to be as professional and precise as possible, you have to inform your borrower of the good AND the bad of the “lower indexes”. And, believe it or not, if you truly “got it”, you know exactly what I mean. But, for those of you that still don’t “got it” but don’t want to admit it (trust me, that was me at one point as well), I’ll go into a bit of further explanation here.

    In terms of indexes and ARMs, what rises must also fall. So, if one Index is “lower” than another, guess what, it will also be “higher” at some point, right? I don’t want to state the obvious, but “duh!” So ask yourself this, if you think you’re selling someone because you’re giving them the lower index, how much referral or repeat business are you going to get when it’s the higher index? In other words, the lower the index, the less stable it actually is. It has lower lows and higher highs. Make sense?

    “Let me explain…no time…let me sum up…” [great line from the movie The Princess Bride], to be the best you can be, you’ll have to divulge both sides of the fence to the borrower. That being said, would the lower lows and higher highs be easier to sell if they were closer together? Translation: Less fluctuations going on? I would say it would, but there are cases for both the lower indexes and the higher indexes so make sure you do your homework and find

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    me at one point as well), I’ll go into a bit of further explanation here.

    In terms of indexes and ARMs, what rises must also fall. So, if one Index is “lower” than another, guess what, it will also be “higher” at some point, right? I don’t want to state the obvious, but “duh!” So ask yourself this, if you think you’re selling someone because you’re giving them the lower index, how much referral or repeat business are you going to get when it’s the higher index? In other words, the lower the index, the less stable it actually is. It has lower lows and higher highs. Make sense?

    “Let me explain…no time…let me sum up…” [great line from the movie The Princess Bride], to be the best you can be, you’ll have to divulge both sides of the fence to the borrower. That being said, would the lower lows and higher highs be easier to sell if they were closer together? Translation: Less fluctuations going on? I would say it would, but there are cases for both the lower indexes and the higher indexes so make sure you do your homework and find

    Your Home Buying Checklist
    A good home buying checklist, like any good checklist, can make things go more smoothly. You will have to put your own list together according to what your own needs, but here are some items that will be common to most home buying lists.___ Prepare. Consider not only what monthly payment you can afford, but how much you want to afford, given your other
    actually is. It has lower lows and higher highs. Make sense?

    “Let me explain…no time…let me sum up…” [great line from the movie The Princess Bride], to be the best you can be, you’ll have to divulge both sides of the fence to the borrower. That being said, would the lower lows and higher highs be easier to sell if they were closer together? Translation: Less fluctuations going on? I would say it would, but there are cases for both the lower indexes and the higher indexes so make sure you do your homework and find out for yourself which your most comfortable with.

    AND, by default, explaining the indexes to the borrower will help overcome the objection of “I’m afraid of the interest rate rising too high.” Ah, the joys of my job…making the not so obvious……obvious!

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