My job is to get people to refinance their home but I am wondering if what I am offering is worthwhile?

Question

I work as a telemarketer for a mortgage company. My main pitch is to offer a 2.25% interest rate and see who is interested. However, this rate is only fixed for 5 years and then the rate rises to whatever rate is out on the market. This is where people start to lose interest. I was wondering if this type of arrangement was worthwhile for the customer or if we are trying to rip them off?

Answer 1

It's an option if they plan on staying in the residence for less then five years, they plan on refinancing before then, or it comes with a Fixed Rate Conversion Option, imho.

But it sounds like your marketing a NegAm Product, which hurts ALOT of people if they are not properly educated on the proper use of one.

Answer 2

These types of loans are definately not for everyone. Yeah, the loan officer may make some money on it, but is that really worth while when the borrower has no idea what to do with the extra money?

The problem i have with these loans is not in the loan type itself, but in the way it is pitched to uneducated clientele. If you do not know what to do with the extra money, and you are not giving them options on what to do with the extra money, chances are they are going to be in a heep of trouble in a couple of years. Yes, this absolutely reflects on the loan officers integrity.

Also, being a telemarketer, I don't think that it is your place to offer any type of rate to a client. It is not your place. Your place is to capture interest and a lead, not to blind them with a product.

If you are questioning the fact that you think it may be wrong, then chances are, you are doing something wrong. These types of mortgage brokers are what gives harworking mortgage bankers, like myself a bad name.

Please position yourself with a good mortgage lender and start to focus on the long term benefot of the industry. Align yourself with Realtors and other industry partners that trust you and your ability to do the job and get it done right. Refi shops are a thing of the past and you will soon realize that once you find the true meat and potatoes in this business.

This has been a GREAT question, and I look forward to you learning more about the industry because it is people like you, that question the decptive practices of others, that bring integrity back into mortgage lending. I was at this point once in my career.

Good luck and keep pushing forward.

Answer 3

I am a telemarketer for mortgage company too, we also do the same the way you do. The best thing is let the customer know everything straight forward and if they want 2.25% rate for 5 yrs you are not ripping anyone.I would say they are saving alot they can also go for refinance after 5 years and this can lower down there expenses further. I would like to know more about ya, let me know where are you from and probably we can have some good deals together.
Shoot me a mail at [e-mail]

Answer 4

this could be a bad loan... the bank will add principle to the balance... yeah you pay 900.00 for a mortgage payment but instead of you owing 200,000 you now owe 200,500. And the next month you pay 900.00 and owe 201,000...etc. this goes on for 5 years. After 5 years you have paid no principle and now owe 230,000. Just to get the low payment! BUT, most houses will go up more than 500 dlls per month in equity so its depending on the region it might be a good or bad deal... You see.

Answer 5

that was the most carefully worded ad posing as a question I have seen on Yahoo Answers...

bravo...