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Many past clients took an adjustable-rate mortgage because it gave them a lower starting rate. Years later, the fixed period ends and the rate can change. That reset date is one of the most predictable moments in a borrower's life, and a loan officer who reaches out ahead of it looks prepared instead of pushy.
Why ARM reset dates matter
When an ARM adjusts, the payment can move up or down based on the index, the margin, and the rate caps in the note. Many borrowers do not remember those terms. If the first they hear of a change is a letter from the servicer, they may feel surprised and start shopping with whoever calls first.
Track the dates in your CRM
- First adjustment date. Note when the fixed period ends for every ARM you close.
- Adjustment frequency. Know whether the rate changes every six months or every year after that.
- Caps and margin. Save the basics so you can explain the likely range of change.
Set reminders several months before the first adjustment so there is time to review options without a rush.
Explain the options in plain language
Some clients will be fine keeping the ARM, especially if they plan to sell soon or the new rate is close to market. Others may want the stability of a fixed rate. Walk them through what could happen to the payment, what a refinance would cost, and how long it would take to break even. Our post on when to call past clients about refinance rates covers how to time that conversation.
Keep the outreach calm
Open with a simple heads-up, not a sales pitch. A short message like "Your loan's fixed period ends next spring, want me to walk you through what that means?" lets the client choose the next step. Follow up with a short call or a one-page summary they can share with a spouse or partner.
Stay in touch after the review
Even if they decide to keep the ARM, stay in touch. Check in again before each later adjustment and whenever rates move meaningfully. Clients remember the loan officer who warned them early.
Bottom line
ARM reset dates are known in advance, so there is no reason to let them sneak up on a past client. Track the dates, reach out early, explain the choices clearly, and let the client decide.
RateUpdate keeps your past clients on a branded monthly rate update, so you are already in touch when their ARM is about to adjust.