{"id":1741,"date":"2010-01-06T14:30:38","date_gmt":"2010-01-06T09:00:38","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=1741"},"modified":"2010-01-06T14:30:38","modified_gmt":"2010-01-06T09:00:38","slug":"what-is-pay-option-arm-theory","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/what-is-pay-option-arm-theory\/","title":{"rendered":"What is Pay Option Arm Theory?"},"content":{"rendered":"
Almost every LO that sells it, approaches the Pay Option Arm loan (or concept) as the part of the mortgage that gives meaning, they emphasize it as the pinnacle of the transaction. \u00a0In reality, the most important part is the borrower.<\/div>\n
I\u2019ve recently got this comment: \u00a0 I just can\u2019t seem to get people to understand the power of the Pay Option Arm loan. \u00a0It\u2019s like the borrowers don\u2019t understand the importance of it and how it can benefit them.<\/div>\n
This comment kind of confused me at first, more on the theory side rather than the practicality side. \u00a0\u201cThe borrowers don\u2019t understand the importance of it\u201d was the confusing part. \u00a0 After I thought about it, I realized something, the borrower doesn\u2019t have to understand the importance of it, the broker\/LO has to.<\/div>\n
The more I thought about it concept, the more clear it became to me. \u00a0Let me attempt to put my \u201ctheory\u201d into words. \u00a0You may have to read this twice, so go grab your coffee, maybe get a donut, and let\u2019s get down to business.<\/div>\n
<\/div>\n
Almost every LO that sells it, approaches the Pay Option Arm loan (or concept) as the part of the mortgage that gives meaning, they emphasize it as the pinnacle of the transaction. \u00a0In reality, the most important part is the borrower. \u00a0Oh sure, the POA is extremely important, but not so much that the focus is drawn away from the borrower.<\/div>\n
If you can understand this next statement, you\u2019ll be wealthy in this business. \u00a0 Generally speaking, borrowers don\u2019t know much about this industry, so spewing numbers and figures doesn\u2019t do a lot of good (besides, every other LO does it, so be different).<\/div>\n
So, by you telling the borrower how important the POA is will not always get them to buy. \u00a0 You need to find out what they need (not what they want)<\/div>\n
[by the way, that\u2019s called needs-based-selling]. \u00a0That\u2019s the most important part of the transaction. \u00a0Once borrowers realize what they need, selling the POA is simple.<\/div>\n
If you want to set yourself apart from a majority of the industry, you need to take the emphasis off of you and place it on the borrower. \u00a0If the only thing you\u2019re selling is a 30 yr fixed or a 5\/1 ARM, you\u2019re doing yourself AND your borrowers a HUGE injustice. \u00a0You cannot assume that just because what you feel is a better product, it will be best for your borrower as well. \u00a0Besides, if you really sit down and analyze those others programs, you may realize that you\u2019re not helping the borrower at all and you\u2019re keeping the importance of the transaction on yourself and the loan program. \u00a0I also realized my last comment may have just turn a lot of people off\u2026.if that\u2019s you, that wasn\u2019t my intention. \u00a0I\u2019m here to present ideas, I\u2019m here to make you think, and if I\u2019ve made you think about this at all, I\u2019ve done what I set out to do.<\/div>\n
.<\/div>\n
In reality, the most important part is the borrower. \u00a0Oh sure, the POA is extremely important, but not so much that the focus is drawn away from the borrower.<\/div>\n
If you can understand this next statement, you\u2019ll be wealthy in this business. \u00a0 Generally speaking, borrowers don\u2019t know much about this industry, so spewing numbers and figures doesn\u2019t do a lot of good (besides, every other LO does it, so be different).<\/div>\n
So, by you telling the borrower how important the POA is will not always get them to buy. \u00a0 You need to find out what they need (not what they want)<\/div>\n
[by the way, that\u2019s called needs-based-selling]. \u00a0That\u2019s the most important part of the transaction. \u00a0Once borrowers realize what they need, selling the POA is simple.<\/div>\n
If you want to set yourself apart from a majority of the industry, you need to take the emphasis off of you and place it on the borrower. \u00a0If the only thing you\u2019re selling is a 30 yr fixed or a 5\/1 ARM, you\u2019re doing yourself AND your borrowers a HUGE injustice. \u00a0You cannot assume that just because what you feel is a better product, it will be best for your borrower as well. \u00a0Besides, if you really sit down and analyze those others programs, you may realize that you\u2019re not helping the borrower at all and you\u2019re keeping the importance of the transaction on yourself and the loan program. \u00a0I also realized my last comment may have just turn a lot of people off\u2026.if that\u2019s you, that wasn\u2019t my intention. \u00a0I\u2019m here to present ideas, I\u2019m here to make you think, and if I\u2019ve made you think about this at all, I\u2019ve done what I set out to do.<\/div>\n
Once you understand this theory, selling the Pay Option Arm is simple.<\/div>\n","protected":false},"excerpt":{"rendered":"

Almost every LO that sells it, approaches the Pay Option Arm loan (or concept) as the part of the mortgage that gives meaning, they emphasize it as the pinnacle of the transaction. \u00a0In reality, the most important part is the borrower. I\u2019ve recently got this comment: \u00a0 I just can\u2019t seem to get people to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[5039,5038],"class_list":["post-1741","post","type-post","status-publish","format-standard","category-general","tag-pay-option-arm-loan","tag-pay-option-arm-theory","entry"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=1741"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1741\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=1741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=1741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=1741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}