Refinance Leads and Lists

With rates at a historical low again (in the mid 4% range as of the 20th of august 2010), refinance activity should be gearing up big time. But how can you know where to find the best refinance leads? Many companies offer various data sets but few actually understand how the data is compiled and the best way to target ideal customers. Having experience with various lead and list sources has allowed us to compile a few" rules of the road" when looking strictly at mortgage refinance leads.

One thing we now know more than ever is that LTV and credit score are the most important qualifiers in a refinance leads list. Many companies offer estimated LTV without AVM back up. And many list and lead providers used a modeling based on zip 4 for credit scores. Both of these are sure fire loses and will end up providing a lot of unqualified prospects. Using a real AVM based LTV and a true FICO score based on a soft inquiry is the only way to truly pre select the correct refinance candidates. Even though there are other variables such as loan amount, length of time since last loan, etc. the LTV and FICO are the two most important real variables that cannot be modeled otherwise all direct marketing efforts will end up with a lot of unqualified inquiries.

Other forms of refinance leads exist via companies that offer a TV or Radio spot that is then transferred as a 'call-in.' For this lead type, consider your cost per loan acquisition and compare it with other methods including print advertising (land and homes, penny saver, newspaper) and direct mail. Your comparison should include things such as: % of qualified callers, average length of each call, closing ratio, total closed loans, total profit. Basing all marketing on total profit is tricky but it's a good gauge as to the quality of your lead source. Looking at total closed loans also shows where you can obtain referral marketing from and this is also very important. Good refinance leads show excellent ROI both in number of closed deals and total profit. If you don't see this correlation, consider mixing up your marketing to reach these targets.

A word of caution; many companies that offer refinance leads like to package them up into large commitments and subscriptions. Any company that produces their own leads should be able to provide a small amount of leads as a testing start. Growing this test model out should also be a no hassle situation. Real marketing firms know the value of a long term customer so they never nickel and dime however many firms that sell leads are not in tune with this theory so make sure you pick carefully when it comes to choosing your refinance leads partner. 

Aaron writes more about getting quality leads at:   

For more information, please visit: Reverse Mortgage Leads