Model ARM Disclosure – Adjustable Rate Mortgage Ad

So you want to place an add for a 5/1 ARM on a flyer, a mailer, a banner ad, a Facebook post? What needs to be in that ad? Lets assume you have some triggering terms like a payment amount or an interest rate so you will need to make all applicable disclosures.

Here’s the list of what must be your ad:
1) The APR (annual percentage rate). This should be listed right next to the statement of the interest rate – in same size font and same font color etc. It must be clear and conspicuous.
2) Make sure its clear that your ad in an adjustable rate mortgage loan (ARM) product and do not hide this fact.
3) State the effective date of the interest rate you have displayed.
4) Include a statement that the rates are subject to change.
5) State the payment amount during the initial five year period.
6) And here’s the tricky part – state that remaining terms of the repayment. This requires you to tell the borrower how the payment will change after the five years are up.