I was recently at a seminar about mortgages and such, not particularly focused on the anything special, just general mortgage stuff. Nothing major really happened accept a lot of conversation.
One of the things I kept hearing people discussed was the minimum payment on the Pay Option Arm. That got me thinking a bit so I wanted to focus article on the minimum payment.
Let's make one thing clear, if you solely sell the POA based on the minimum payment and nothing else, you will sell this loan. BUT, in my opinion, you will not have the same long term referral effects from selling just on the minimum payment as you would if you sold it on your knowledge of the product and the mechanics of the product. Also, in my humble opinion, if you sell it based only on the min payment, you should not be in this business!
Here's what I mean:
If you sell someone just on the min. payment, that's fine. (not really, but I'm trying to be nice) BUT, what if that person refers you to someone who has something of an understanding about finances and indexes and stuff? If that person comes to you and you can not discuss anything else intelligently, guess what? You have completely lost credibility with that person and that person may go back to the first person you sold the POA to and tell them you do not know what you're talking about. Chances are, that original person is going to trust his / her friend and now your trust level with them has been brought down a few notches. Not only that, but that person may feel a bit uniquate with the friend now because they may have the feeling they were "taken" or sold a bad product. Read that last paragraph again, it's a bit confusing but it should make sense.
This is basic edification. If someone edifies, or talks you up, to someone else and you do not meet the expectations that were set up about you, then you look really bad in everyone else's eyes. In the case of the POA, if all you can discuss is the min. payment thing, then I'm telling you to go out and get BASIC knowledge of other "moving parts" of the POA.