Mortgage Lead Companies, Eight Features to Consider

Tuesday, June 15th, 2010 at 8:37 am  
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So now the time has come to invest in Mortgage Lead companies, but how do you know which one is the right one for you?

When I was a new loan officer, finding a mortgage lead company was not easy, I can remember logging onto major search engines, typing in the key word “mortgage leads” and being bombarded with links leading me in the direction of mortgage lead companies all claiming to have the best mortgage leads and the best mortgage lead program for me!

But what was the best mortgage lead program for me? That all depended on what I was looking for. So, taking my time, I began to right down exactly what it was I was looking for, did I want refi’s, purchases, or both. Did I want mortgage leads from several states or just one, how much could I afford? Etc., etc.

Before I invested any time or money, I decided I was really going to do my home work, I went to sites of the mortgage lead companies I was considering to read their terms and conditions, I spoke with reps in their sales department and asked many questions, I went to mortgage lead site reviews posted on the web to see what kind of experience other loan officers had with the mortgage lead companies I was considering.

One thing to keep in mind, No mortgage lead company can guarantee you a 100% closure ratio, and they are very up front about that, if that is what you are looking for, you can end your search now.

Still with me? Good!

Here are a few things to consider before committing

1) Pricing

If you are on a tight budget, and have, lets say, $100.00 to spend, you will have to narrow your search to the mortgage lead companies that accept a $100.00 or lower minimum or will meet whatever spending limit you have set for yourself. Some mortgage lead companies have deposit requirements, not allowing you to deposit less than $500.00, so this would not be the mortgage lead company for you.

2) Lead Generation

Find out where the mortgage lead company is generating their leads from. Some mortgage lead companies recycle their mortgage leads and sell them many times over to many different loan officers. They also buy their mortgage leads in bulk off of other mortgage lead companies and resell them, so make sure you ask this very important question up front.

3) Return Policy

Look for a mortgage lead company with a liberal return policy, the best way to find out this information is through lead site reviews.

If you receive a mortgage lead with incorrect contact information, there is no reason why you should not receive a refund.

4) Quantity vs. Quality

Be careful when you buy in bulk, when you can spend $100.00 and receive 50 leads, chances are the mortgage leads are old and are being recycled, and the closing ratio isn’t so good.

If you can spend $100.00 and receive five to ten fresh mortgage leads, you may be better off, and also have a much better closure ratio.



5) Cherry Picking vs. Filters

Cherry picking is a nice feature, and a very popular one, it allows you to go into a site and view a mortgage lead before you purchase it, some sites even let you know how many times it has been sold.

Filters are also very nice features also, they allow you to predetermine what kind of mortgage lead you want, and when a mortgage lead comes in matching your filter criteria, it is sent directly to you via e-mail or fax.

6) Customer service

As in all business’, customer service is key, and the way they handle themselves on the phone can be perceived as a good indication as to how their company is run.

If you are struggling to get a hold of someone, or your phone calls are not being returned, they are most likely not worth doing business with.

7) Referral

One of the best ways to find a mortgage lead company, is to have one referred to you by a co-worker, or by someone within you organization who has had success with a mortgage lead company. Ask around and see what you can come up with.

8) Exclusive vs. Nonexclusive

If you want to receive mortgage leads exclusively, you will pay a steeper price, however this mortgage lead will be sold to you only, doing away with your competition.

Non exclusives mortgage leads are sold on average three to five times, it usually will cut the cost of the mortgage lead in half, but keep in mind, you are now competing with other loan officers. Remember, you get what you pay for.

One last thing..

By considering these eight features of mortgage lead companies, you are well on your way to choosing the best mortgage lead company for you, and at the right price. But don’t stop here, continue to gather as much information as you can before you invest your money. I can’t stress enough just how important the mortgage lead review sites are, check them out, it will be worth your time.





By: Jay Conners

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How a Mortgage Accelerated Loan Program Works

Tuesday, June 15th, 2010 at 12:09 am  
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If you want to own your home free and clear and you know that you are years away from being able to do it, then you should check out a mortgage accelerated ownership program. These programs will help you to pay off your mortgage faster by adding one interest free monthly payment to the premium to your payments each year. This one payment can really add up, especially since the payment goes entirely to your principal and not to the interest on your mortgage account.

So how does it work? The theory behind the mortgage accelerated ownership program is simple and easy to understand. Start with this:

There are 52 weeks in a year.

You are paid (in most cases) every 2 weeks.

That means that you get paid 26 times in a year.

In most cases, you take your 2 paychecks a month together to pay for your mortgage.

So you pay your mortgage 12 times a year – that’s 24 paychecks.

Where do the other two paychecks go? In most cases, nowhere. Those two “extra” paychecks get placed into a savings account or worse yet; they are spent as soon as they come in since they are “extra”. With a mortgage accelerated loan program, however, those two extra paychecks go right onto your mortgage to create a 13th monthly payment every year, dropping your principal balance by the full amount of a month’s mortgage payment.

There are several ways to do this kind of program, one of which is to simply add a certain amount to your own monthly payment all by yourself. The problem with this is that because you are not enrolled in any special program with your bank, you might be tempted to slack off when there are other better things to spend your money on. Unfortunately, it seems as if there is always something better to spend your money on than extra mortgage payments, and the “program” simply doesn’t work unless you are dedicated to making it work.

A better option is to find out from your bank if you can enroll in a mortgage accelerated loan program through them. They will either bill you every other week for the amount of half your normal mortgage payment, or they will deduct the money automatically, either from your bank account or from your paycheck. This will help you make the payments whether you “want to” or not, because they are coming directly out of your cash flow before you even see it.

Because there are an extra two paychecks in this kind of plan, the balance of those two payments goes directly onto your mortgage, reducing your debt. This can take a good deal of time off of your mortgage, especially if you are settled into a 30 year mortgage already, and are looking for ways to shave off a couple of years.

If your bank or lender does not have an accelerated mortgage repayment program, then consider doing it yourself. You should write out a check for half the amount of your monthly mortgage payment every time you get paid without fail. If your bank will not let you send these checks in individually, then hold onto your first check until you can send both together. Send them two at a time rather than waiting and writing out one every other paycheck, or you may start to allow yourself to slide back into only 12 payments a year.

Also check with your bank to make sure that you will not be penalized for making an extra monthly payment during the course of the year. If they are charging you heavy fees for paying “too much” on your mortgage, then it might not be worth the money that you put onto your premium because of the high cost. If this is the case, then you might want to consider refinancing to get rid of this stipulation. You will still have to pay the fees for an early repayment, but it might be less if it is done all at once, at least.

Another option, especially if you like your bank, is to warn them that you plan to refinance because of the high fees on extra payments. Ask if they would be willing to waive those fees in return for the continuation of your patronage. They might not agree, but it is always good to ask, and you might get just what you are asking for if you talk to the lending division and make your position clear. With no extra payment penalties, your mortgage accelerated loan program or the decision to accelerate your payments will help you own your home free and clear much earlier.



By: Craig Elliott

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Looking For A Bad Credit Mortgage Refinance Loan?

Wednesday, May 5th, 2010 at 6:01 am  
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By having a low credit score, it can be difficult to refinance on your house, but it is very possible to get a bad credit mortgage refinance loan.  It requires diligence and often a bit of luck on your part, however.

A big thing that stands in the way of getting a bad credit mortgage refinance loan is the state of the economy and market at the time you are trying to get the loan.  Right now, the market is starting to pick up, but in the last few years it has been quite low because several people bought houses they could not afford and defaulted on their payments.

Obviously, you have bad credit because of your financial history.  You either made poor payments, skipped out on bills, declared bankruptcy and the list goes on.  It is not worth thinking wishfully in the past to dream about changing your credit.  You need to focus on the present and figure out where to go from here.  For starters, make sure you do not make purchases beyond your means and that you can always afford the payments that you have to make.  You cannot afford to miss any more payments and allow your credit score to drop any lower.  The goal is to have it climbing consistently higher, setting yourself up for future loans and better interest rates.  The more stable you are financially, the more likely lenders are to give you money without a lot of restrictions.  If they trust you, they will give you more money in a shorter amount of time for more reasons.  It always pays to raise your credit score.  But, even when you have poor credit, you can still find somewhere to get a mortgage refinance loan.



By: Alan Lim

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