What’s wrong with this internet mortgage ad?
What do you think about this email mortgage ad that we saw this week. It advertises The Harp program but has at least one flaw in our view …
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Monthly Archives: April 2016
3 Way Ad shows ARM, Heloc and 30 Year Fixed
This Postcard Mailer advertises an ARM, Heloc and 30 Year Fixed Rate Loan. The main offer however is for an ARM.
Notice that the ARM product being offered is a 5-5 ARM. We don’t see that product that often. Recall that a 5-5 ARM means the rate is fixed (in this case the ad shows an interest rate “as low as 2.75%) for the initial five year period and then the rate will adjust only once every five years. This differs from 5-1 ARMs where the rate can adjust once every 12 months. The index is a 5 year CMT.
Click on the ad to get a closer view of the detail. We like the way the ARM payment changes are disclosed but the font size is a bit small to manage with ease. Notice that the ad also discusses rates and payments on a 30 year product though no real offer was made on a fixed rate loan in the ad. It’s a very thorough disclosure of Reg Z required disclosures but may be a bit more than what is needed which forced the lender to use a smaller font size.