Saturday, June 26th, 2010 at
3:34 am
If you want to promote a mortgage program, be prepared to pay a pretty penny if you try to utilize online advertising methods such as Google Adwords. Currently, in order to grab the keyword ‘mortgage’ you will have to pay at least $10.95 per click. This means if you get 1,000 clicks to your mortgage program, you will have to pay $10,950. And with the average conversion rate being just 1 percent, that means you’ll only be getting 10 sales. Now, maybe if you’re a mortgage company you can afford to pay $10,950 for 10 sales, since you’ll be making hundreds of thousands more. But if you’re an affiliate promoting a mortgage program, you should consider a better alternative… mortgage leads.
What are mortgage leads? Mortgage leads are a collection of data pertaining to individuals that would be interested in a mortgage or refinancing loan. They are gathered by marketing companies who use a variety of methods both online and offline to collect them. Some of these methods involve extracting data from public records. Others use methods that make it easier to acquire more personal information. For example, a marketing company could conduct an online survey of a group of individuals. Or, maybe they get the data from realtors, banks or other entities having access to such information. Either way, most mortgage leads will contain enough information to allow for a direct mail campaign. This means at the very least, a basic package of mortgage leads will provide you with a person’s name and address and whether or not they own a home.
There are also more specific mortgage leads. These are known as mortgage trigger leads or exclusive mortgage leads. Mortgage trigger leads collect data based on a person’s credit report. Usually, with mortgage trigger leads, the person had just made an inquiry, indicating they are obviously interested in a mortgage loan. Mortgage trigger leads are a bit more expensive, because they target a niche of people that are very interested in getting a loan. This translates into a better conversion rate.
Then there are exclusive mortgage leads, another type of more specialized mortgage leads. They do not target highly-convertible leads like mortgage trigger leads do, but they offer another invaluable advantage… exclusivity. Just as their namesake indicates, with exclusive mortgage leads, your list is sold only to you. This means that you don’t have to worry about other marketers or mortgage companies trying to reach the clients that you are also trying to advertise to. But, just like mortgage trigger leads, expect to pay a little bit more for the exclusivity.
Price-wise, the fees associated with mortgage leads will depend on the company you decide to work with. But generally, they will range from a few cents to a few dollars. If you’re low on funds, it’s best that you just order the minimal amount of mortgage leads, like maybe 1,000 or so. From there you need to decide how you’re going to do your direct mail campaign. Believe it or not it doesn’t have to be fancy. There are plenty of marketers that use regular stamps and Microsoft Office-created flyers to advertise to their mortgage leads. In fact, doing things this way is a great method to affordably determine if your mortgage leads will convert. All you have to do is get a pack of 100 stamps, (which are available from USPS for just $41), a color cartridge, a pack of paper and envelopes. All together these things should cost less than $100. From there, you can test your market, mailing out flyers to 100 mortgage leads at a time. You’ll want to aim for a 10 percent conversion rate, which means 10 sales. If you’re not getting the sales you’re looking for, you can consider changing your flyer or even thinking about whether your mortgage leads were worthwhile to begin with.
Disclaimer:This blog or article is for information purpose only, and should not be treated a professional advise or price protection guarantee. This blog is mainly used for search engine optimization and other commercial purposes and it is advised that readers seek professional consultation in the field of interest for more information.
By: Black Book Data
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Friday, June 25th, 2010 at
8:32 am
Choosing the right mortgage broker is important, as you want to make sure you save as much money as possible on the mortgage loan that you take out. Being picky about your mortgage broker is more than just a matter of trying to save a few dollars, though – the right mortgage broker will also help ensure that you get the best loan terms available to you, and that you will have someone that you can work with should any changes need to be made to your mortgage loan’s terms. Comparing mortgage brokers is not difficult, but it does require that you have a basic knowledge of what to look for in the mortgage loans that the different brokerages offer to you.
It is important that you understand exactly what a mortgage broker is, of course; unlike a traditional bank or mortgage lender who will offer you a mortgage loan directly, a mortgage broker will pair you with a lender that meets your needs and will act as an intermediary between you and the lender. Because of this you can often get a better deal on a mortgage through a broker than you would be able to directly, since they can do the “shopping around” for you. Different mortgage brokers may offer different rates and terms on the loans that they find for you, however, so it is still important to shop around and compare brokerages before choosing the one that is best for you.
Before you start to compare mortgage brokers, take the time to research the basics of mortgage loans online. Not only will this give you some useful information that can be used as a basis for your comparisons, but you may also be able to learn about mortgage options that you did not know about previously. This does not mean that you have to learn everything that there is about mortgage loans, of course; simply try to cover the basics of loan options, opening and closing costs, and interest rate plans. You may also wish to take the time to find out what the average interest rates in your area are as well as nationwide so that you will have a better idea of how good of a deal the rates that you are being offered are.
Once you have a basic grasp of the mortgage lending process, start looking for mortgage brokers who operate in your area. You should be able to find several using your local telephone directory or internet listings. The more mortgage brokerages there are in your area then the greater your chances will be of finding a good deal on the mortgage loan that you take out, since you will have a number of different options to choose from. Begin contacting each of the brokers that you find and request average interest rate and loan term quotes from each.
When you have collected quotes from a number of different mortgage brokers it is time to begin your comparison. Sort the quotes by the interest rate that is being charged, but make sure that interest is not the only factor that you look at. In addition to the interest rate that you have to pay there may be a number of other costs which can affect how good of a deal a particular mortgage is, and the terms of one mortgage offer may not be as flexible as those of another. Sorting quotes based on interest will at least give you an idea of where the various offers stand based on one of the most obvious factors of the mortgage, however, and can also make it easy to eliminate the offerings of any broker whose rates are much higher than the others.
You may also list the points next to each loan’s interest rate. Points are a percentage of the loan you pay either at closing or rolled into the mortgage principal that acts as a “buy down” of the interest rate. For example, a rate that is 1% lower than a comparable loan may have 1 to 3 points attached to it whereas loan number two has zero points. Depending on the amount you are borrowing, one of these loans may be less expensive than the other. Your particular situation will determine which has the lower overall cost.
Begin comparing the quotes that you have received based on the estimated monthly payments you will have to make, opening and closing costs, and any specialized terms or conditions that certain mortgage quotes might have. Read through the quotes of the mortgage brokers several times to make sure that you have all of the information that you need for your comparison, and begin removing quotes from consideration when you find them to be more expensive or to have more strict terms than some of the other quotes. Continue reducing your potential mortgage loan quotes until only two or three remain so that you can compare them more closely before choosing a mortgage broker. Once you have finished the comparison you should have an idea of the broker who will find you the best deal on your mortgage so that you can then begin the process of getting the exact loan that is right for you.
By: Shawn Thomas
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Tuesday, June 15th, 2010 at
12:09 am
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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