Mortgage Leads, Overcoming Objections
If you are a loan officer or mortgage broker, and you are obtaining leads from a mortgage lead provider, it is important that you get the best return on your investment that you possibly can.
For starters, understand that a lead provider does just that, they provide you with leads. It is entirely up to you to make the sale.
When you call potential customers, it is not unlikely to be confronted with objections, regardless of where your leads are coming from.
Here are a few tips for overcoming some of these objections.
If you call a customer and they say that they are no longer interested, it is most likely because they lost their nerve.
Purchasing or refinancing a home is a very big financial deal, so it is understandable if your customer gets cold feet.
Say something to this effect in the nicest voice you have . . .
Oh, Im very sorry to hear that, after looking at the on-line form you filled out, I was able to fit you into one of our programs that I am sure you would be interested in.
If a customer tells you that they are working with someone else. They either really are, or again, they have lost their nerve.
Say something to this effect . . .
Im really sorry to hear that. We offer some really nice products and I only wanted to take a minute of your time to go over some of our programs.
Although these approaches will get the customer talking the majority of the time, there are the times when it does not work.
Here are a few other things you can do . . .
Most lead providers supply you with an e-mail address, so e-mail them with some attractive products and tell them briefly about the benefits of working with you and your company.
Also, you can mail them out some flyers with some products that you believe would meet their mortgage needs along with some of your business cards.
Whatever happens on your sales call, do not give up after one objection. If you have not been having success with your leads, than you need to change your approach.
Remember. The lead provider cant do the selling for you. Best of luck with your leads.
Mortgage Equity Withdrawal – The Refinancing Trend
Mortgage Equity Withdrawal is the formal name for equity refinance, reverse mortgages or simply home loans based on equity (as the security for the loan).
Mortgage Equity Withdrawal rose to 8.7 billion pounds in the second quarter of this year to its highest since the third quarter last year, official data showed (on Tuesday 4th Oct 2005).
Mortgage Equity Withdrawal is a measure of the equity Britons have extracted from their homes but which they have not re-invested in property.
Sharply rising house prices in the last few years have encouraged a trend where Britons refinance their mortgages to extract cash which many economists say has helped support spending.
The Bank of England said that Mortgage Equity Withdrawal was up sharply from 6.437 billion in the first quarter of this year although it is still well below the 14.5 billion seen one year ago, when house prices were rising more than 20 percent annually.
The Bank of England has since cut interest rates by a quarter of 1% to 4.5 percent which could support Mortgage Equity Withdrawal in coming months, particularly as there are signs that the property market may be stabilizing after a year of stagnation.
As a percentage of post-tax income, Mortgage Equity Withdrawal rose to 4.2 percent from 3.2 percent in the first quarter of the year but is well down on 7.3 percent seen a year ago.
” Mortgage Equity Withdrawal appears to have found its way into increased holdings of financial assets (equities, bonds) as much as extra spending,” said Geoffrey Dicks, UK economist at RBS Financial Markets.
“Generally the pick-up in Mortgage Equity Withdrawal is probably indicative of more `normalization’ of the housing market but while it is saved rather than spent, the policy implications are not huge.”
Official data last month (September) showed the saving ratio rose to 5 percent in the second quarter of this year from 4.5 percent in Q1 (also of this year).
Separate figures showed UK residential construction barely grew in September, putting in its weakest monthly performance since May.
But what does this mean in real terms?
There are several key points in this statement, these are:
1.People are refinancing their homes because of increased value
2.People are not necessarily spending the money on the property
3.People are not necessarily spending the money in the high street
These three points are important to all of us, not just the policy makers. Heres why.
Lets consider the first point, people are refinancing there homes because the equity has grown rapidly.
This statement tells us that the housing market although not sky rocketing as it was a couple of years ago, is none the less still rising.
The second point tells us that when people effectively withdraw this money it is not to improve the home itself, hence the equity of the property will not grow at a better rate than market rate.
The third point is perhaps most telling, people are not taking the money and spending it in a hap hazard manner but are potentially saving it (bonds, shares, bank accounts).
So what do this mean for us?
Well, its a bit of mixed signals heads up if you like.
The general population (property owners) are slipping into ever increasing levels of debt (if youre refinancing your mortgage or freeing up equity as the agents put it, you are effectively borrowing money) unless its a reverse mortgage.
People who are refinancing are not improving the quality of the property with the money and so if the market takes a fall their property will devalue as much as the next property (whereas if theyd returned some of the capital into improvements they would at least be sitting on a lesser slump in value).
Finally, and perhaps the most damming sign is that people are saving more, this is not a good sign. In a healthy economy the rate of saving is low, this is primarily because confidence is high (people arent worried about the bills or their jobs) but the fact that more people are now starting to save money rather then spending it means that the retail sector will be taking a hit, this means that the bottom end jobs will be in danger, this in turn has a knock on effect in the service sector and becomes a vicious circle the end result being market stagnentation .
But what this trend does illustrate quite simply is that you can potentially get more money back in savings interest than you pay out in refinancing interest so at the moment the smart moneys in equity refinance.
Make the Most of Your Mortgage Leads
If you are a loan officer or mortgage broker and you invest in mortgage leads, or you are considering investing in mortgage leads, make sure you are making the most of them.
A lead provider, if they are a good one, can provide you with a good quality lead, the rest is up to you.
The lead provider has no control over what the potential customer might say.
Put yourself in the customers shoes. Purchasing a home or refinancing an existing one are very big financial decisions in the life of the consumer. They most likely will be a little apprehensive.
When you call a lead you receive from a lead provider, and the customer seems to be in a stand off mood, say something like this.
Would you mind if I just went over some of the programs we have to offer, it will only take a minute of your time, and it will cost you absolutely nothing.
This approach takes the pressure off of the customer, and nine times out of ten, they will move forward with you and listen to what it is you have to offer.
If a customer says they are no longer interested, it is only because they lost their nerve.
Say something like this.
Oh, that is too bad, I have a lot of great programs that fit the description of the profile you filled out on line, it will only take a minute and it will cost you nothing.
You will be surprised at the responses you receive.
Whatever you do, dont give up after the first try. It is all about the approach. You do the talking, tell them what they need to hear about your products, it will make a huge difference in the amount of loans you close.
A quick guide to remortgage
Remortgaging means that we are taking a new mortgage to repay an existing one.
As time passes, the appreciation in property rates raises the home equity available at the disposal of the homeowner. Remortgaging utilizes this increase in property valuation to get a better deal on debt, or some extra money. Remortgaging does not involve selling or changing homes, but the debt may be transferred from one lender to another.
There are instances, when we require funds for some new construction, such as an extra bathroom, new kitchen, additional bedroom etc. Many times we find that some of our existing borrowings, charge higher rates of interest than those charged by our mortgage lender. In such cases, we can use the additional home equity available with us to provide funds and ease the repayment burden by remortgaging.
UK, in recent times has seen a sharp decline in mortgage rates. Therefore, more and more homeowners having existing mortgages, are applying for a remortgage to take advantages of the lower rates.
www.get-secured-loans.co.ukpersonal_secured_loan_mortgage.htmlRemortgaging has become an easy process due to the increasing use of information technology in the lending process. People can now apply online for a remortgage right from the comfort of their home or office. This has significantly reduced the time and effort for getting a property remortgaged.
Considering the reduced interest rates and easier repayment options, the homeowners often see remortgaging as good source for generating capital. Changing high interest debts into low interest remortgage with easy repayment terms is often, quite lucrative for the debtors. By changing their debt type they can significantly reduce the repayment burden.
There are many lenders in the UK market, which provide competitive remortgage offers. Since, remortgages are used to move debts; it should be seriously considered that the cost of moving debts should not offset the savings in any such process.
The redemption fees, is the biggest cost to be incurred while taking a remortgage. A redemption fee is what a person has to pay when he ends an existing mortgage contract and applies for a remortgage. There are early redemption penalties, which escalate the overall costs of remortgage. These penalties are the largest when the debt is still new. Generally, remortgaging is not advised when such penalties are very high, but if you have a particularly good offer, which offsets the loss due to the early redemption penalty, you should consider it.
In addition to the redemption fee, there are many other costs involved with remortgaging. Some of which are discussed below:
The new lender who will provide the debt will like to reassess the value of your property to make sure that it is not a risky deal for him. So, he might charge some valuation fees for this process.
The entire remortgaging process has a legal angle attached to it. This might involve legal consultation fees. In addition to these, the lender might include the conveyance and other office charges.
The debtor should consider these fees while remortgaging. Options are available, where the lender might refund all or a part of the valuation, legal and office charges to the debtors, if the repayment schedule is exceptional. Be sure to ask your lender about such an option.
Remortgaging does provide funds with low interest and easy repayment options, but there are many drawbacks associated with it.
The debt repayment process again starts from the scratch. Short term savings might lead to a long term financial liability. The interests although relatively lower now must be paid over a longer period of time, and again the fact to be kept in mind is that any serious default in payments might lead to repossession.