« MARKE TING continued from page 84
10/1 ARM rates started at 3.875 percent.
In addition, there are caps to the rates
on an ARM. The lifetime cap is generally
5 percent higher than the starting rate,
and there is generally a 2 percent annual
cap. When your five-, seven- or 10-year
ARMs come due, add the index — a one-year Treasury bill or Libor — to a margin of
2. 75 percent to get the new rate. Chances
are your clients no longer will have the
mortgage at the time of the adjustment,
but if they do, the caps are in place.
The right payment
As interest rates continue to pose
a challenge for jumbo borrowers,
mortgage originators must be creative
in finding solutions to get their clients
in the homes they want — at rates they
One solution is to look for a lender
that allows extra years of amortization.
For example, some banks may offer a
40-year loan term. On a $1 million loan
at 4. 5 percent with the typical 30-year
amortization, the payment would be
about $5,066.85. Let’s assume that
your client is tight on ratios and can’t
qualify for a payment of more than
$4,700. If you take that same principal
balance and rate and amortize it
over 40 years, you have a payment of
$4,495.63. Now the deal works and the
client can get the mortgage.
Another technique to reduce today’s
high payments is the old-fashioned
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professional loan officers belong at Umpqua Bank
With more loan programs plus the support and financial strength of the bank,
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• FNMA/FHLMC/GNMA direct
• No overlays
• Full suite of loan programs including
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• Servicing retained on 95% of all loans
• On FORTUNE magazine’s-
“ 100 Best Companies to Work For” List
• Local processing/regionalized operations
For more information about joining Umpqua’s team of home lending professionals, contact a regional manager
or check out our Careers page at www.umpquabank.com/careers.
Puget Sound / Eastern WA - Les Bedford NMLS 168735 ph: 253-926-4063
CA / NV - Dan Starelli NMLS 297718 ph: 916-774-3924
Northern / Central OR & Southwest WA - Susan Brown NMLS 471817 ph: 971-544-1032
Mid / Southern OR - Jered Helton NMLS 172989 ph: 541-687-7821
numbers and statistics tend to cause
people to zone out.
Writing and structure
When it comes to writing for a large
audience, simplicity usually works
best. Here are a few considerations
to take into account when drafting
• The writing should be accessible
and concise. Use language your
target audience will understand. Being
succinct is preferable to being wordy.
• Lead with your most important
information. Don’t save up anything
important for the end of your message,
because readers with only a vague
interest may not make it all the way
through your message. It’s better to
hook them at the beginning.
• Break text into bullet points to
create “scanability.” Most readers
will scan a message first to determine
whether the fine points are worth noting.
• Engage your reader with language that
is enticing and will attract attention.
• Make the content accessible. Try
to avoid industry jargon, unless your
audience is other professionals in
the field. Always remember who your
• Use strong, active language rather
than the passive voice.
• Make sure to create a clear and
attention-grabbing subject line that
will make the reader open your
tool of buying down the rate by paying
points. The old formula is one point
is equal to 0.25 off the rate — this
formula is not black and white, but it
is a good guideline. With ARMs, you
may get more than 0.25 off with a one-
So, how can your client get that 3. 5
percent rate seen this past March? For
example, say your client applies for a
loan amount of $417,000. The client
wants to buy, but only with the low
rates seen earlier this year. Using the
base guideline, the client will have to
pay four points to buy the rate down to
3. 5 percent.
Each point is considered to be
1 percent of the loan. So, in essence,
the client is paying an extra 4 percent
of the loan amount. Ask the seller to
pay the 4 percent or, at least, split it. It
could be part of the seller’s concession
and would advance the closing. This
deal, however, often depends on the
amount of inventory on the market
and whether the buyer has other
• • •
When dealing with jumbo loans, the
issue of interest rates and higher pay-
ments is of paramount importance.
Mortgage brokers and originators who
work in this niche must be aware of the
different options available to their clients to buy the home they want with a
payment they can afford. •
«REBOUND continued from page 90 message in the first place.
• Include clear contact information if
you want your readers to get in touch
• Avoid attachments, if possible. Many
readers won’t open attachments for
fear of unleashing a virus.
You’ll want to determine whether your
e-mail marketing strategy is lucrative
for your business. By analyzing the
marketing data gleaned from the
follow-up to your messages, you can
get an idea of their value. Ask yourself
some of the following questions to
determine whether your messages
• Are clients unsubscribing?
• Are new readers subscribing?
• Have your e-mails driven requests
for further information?
• Have your messages resulted in
direct client contact, such as hits
on your website, e-mail inquiries or
• Are readers taking you up on any of
your special offers?
The bottom line in tracking e-mail
effectiveness is whether you are
landing business. By using e-mail
marketing in tandem with a strong
social media presence and traditional
become an industry leader. •