| With rates at a historical low again (in the mid 4% | | | | then transferred as a 'call-in.' For this lead type, |
| range as of the 20th of august 2010), refinance | | | | consider your cost per loan acquisition and |
| activity should be gearing up big time. But how | | | | compare it with other methods including print |
| can you know where to find the best refinance | | | | advertising (land and homes, penny saver, |
| leads? Many companies offer various data sets | | | | newspaper) and direct mail. Your comparison |
| but few actually understand how the data is | | | | should include things such as: % of qualified callers, |
| compiled and the best way to target ideal | | | | average length of each call, closing ratio, total |
| customers. Having experience with various lead | | | | closed loans, total profit. Basing all marketing on |
| and list sources has allowed us to compile a few" | | | | total profit is tricky but it's a good gauge as to |
| rules of the road" when looking strictly at | | | | the quality of your lead source. Looking at total |
| mortgage refinance leads. | | | | closed loans also shows where you can obtain |
| One thing we now know more than ever is that | | | | referral marketing from and this is also very |
| LTV and credit score are the most important | | | | important. Good refinance leads show excellent |
| qualifiers in a refinance leads list. Many companies | | | | ROI both in number of closed deals and total |
| offer estimated LTV without AVM back up. And | | | | profit. If you don't see this correlation, consider |
| many list and lead providers used a modeling | | | | mixing up your marketing to reach these targets. |
| based on zip 4 for credit scores. Both of these | | | | A word of caution; many companies that offer |
| are sure fire loses and will end up providing a lot | | | | refinance leads like to package them up into large |
| of unqualified prospects. Using a real AVM based | | | | commitments and subscriptions. Any company |
| LTV and a true FICO score based on a soft | | | | that produces their own leads should be able to |
| inquiry is the only way to truly pre select the | | | | provide a small amount of leads as a testing start. |
| correct refinance candidates. Even though there | | | | Growing this test model out should also be a no |
| are other variables such as loan amount, length of | | | | hassle situation. Real marketing firms know the |
| time since last loan, etc. the LTV and FICO are | | | | value of a long term customer so they never |
| the two most important real variables that cannot | | | | nickel and dime however many firms that sell |
| be modeled otherwise all direct marketing efforts | | | | leads are not in tune with this theory so make |
| will end up with a lot of unqualified inquiries. | | | | sure you pick carefully when it comes to choosing |
| Other forms of refinance leads exist via | | | | your refinance leads partner. |
| companies that offer a TV or Radio spot that is | | | | |
