It's a FACT... If you have an Adjustable Rate Mortgage (ARM), the odds are you are owed money from your lenders. But wait, aren't banks suppose to be good at math? This is a valid question.

These are the REAL facts:

It is very common for banks and other lenders to sell their ARM loans to other banks and make a quick profit. Actually, ARM loans can be sold several times in the secondary banking market!

IMPORTANT: Overcharges are especially prevalent on mortgages and loans that are sold from one bank to another bank!

Let us explain why... It is estimated that there are over 1,000 different types of ARM loans! All ARM loans have their own unique adjustable interest rate computation and programming format. Every time this sensitive data is transferred from the original banks' computer, to the new banks' computer, difficult programming adjustments, changes and modifications have to be made. Typically these program changes and modifications are made by programmers or clerks who are paid on an hourly basis. Historically this high turnover group may not have the necessary training to accomplish this programming nightmare correctly. And to further complicate matters, these same changes and modifications usually need to be done in a HURRY! But it's not only ARM loans sold in the banking secondary market that have to be reprogrammed. Oh, no! Far from it. Everyday you read and hear about banks and other lenders being bought out or merged with other financial institutions. But wait, there's still another BIG REASON for overcharges. Most mortgages are written in "legalese". Unless an attorney is present in the computer data processing department, an ARM loan can be incorrectly interpreted. Even if an ARM loan is correctly interpreted, the programmer or clerk may not have the necessary math skills to compute and program the calculations correctly. RIGHT ABOUT NOW YOU SHOULD BEGIN TO REALIZE THE MAGNITUDE OF THE PROBLEM.

IMPORTANT: Even if the loan is initially programmed correctly, overcharges can still occur during the life of the loan!

Consumers and businesses love Adjustable Rate Mortgages (ARM) loans because the monthly payments are usually lower and the banks seem to make these loans easier to get. Banks and other lenders love ARM loans because it assures them they will always make a profit since the rate can be raised.

Let's look at an esample of how one small overcharge quickly adds up... ASSUME YOU HAD A 1% INTEREST RATE OVERCHARGE ON A $108,000.00 (NATIONAL AVERAGE), 30 YEAR, 7% INTEREST RATE MORTGAGE. AFTER ONLY 4 YEARS, THE OVERCHARGE WOULD AMOUNT TO $2,022.00!

IMPORTANT: Because of the power of compound interest rates, even the slightest error can quickly add up to hundreds or even thousands of dollars in OVERCHARGES!