Internet Mortgage Leads vs. Trigger Leads

When was the last time you opened an old fashioned paper map to plan your route to a tourist destination, that ski lodge you're visiting for the first time or your friend's new home? If you're like most people, it's probably been a while. Most people now turn to the Internet for driving directions. In fact, most people now turn to the Internet when checking movie start times, the current NFL standings or the latest stock prices.

The same is true for those shopping for a mortgage. It's become customary for a mortgage seeker to hit the web, check the current rates and make free inquiries before they buy. A mortgage lead culled from such a person is a quality lead. The potential client is in the market, speaking with lenders and generally responsive.

They say the best time to strike is when the iron is hot. This is where Trigger Leads come into play. When a prospective borrower fills out a 1003, their credit gets pulled. When this happens it creates a mortgage credit inquiry event to be flagged on the borrower's credit record. There is a 24 hour period when this information is available from credit bureaus, and this is the Trigger Lead that is so desirable.

Trigger Leads have reached the point in the buying process when they've had their credit run for a mortgage application. This presents that red hot moment when mortgage brokers can step in and better that offer. The iron is never hotter.

Both Internet mortgage leads and Trigger leads are qualified prospects and both groups can become clients for a quality mortgage broker. Some prefer a prospect who is still at the information gathering stage while other seek those who are about to sign on the dotted line. Your preference determines the ideal lead for you, but in either case, you won't be stuck trying to fold up that cumbersome map at the end of the negotiation.

Mark Carey is an Internet marketer and webmaster of JuicyLeads.com. JuicyLeads is a major provider of Internet mortgage leads. For mortgage leads and trigger leads, visit http://www.juicyleads.com

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Mortgage Refinancing - No Closing Cost - Is it For Real?

You’re bombarded with the ads for mortgage companies almost 24 hours a day it seems. “Mortgage Refinancing – No Closing Cost” Some mortgage companies claim they can get you a great mortgage with no closing cost. Others trumpet how they can get you the best rate and fee structure. Still others claim they can get you both the best rate and fee structure and no closing cost. What gives? Is it really possible to get a great rate on your mortgage refinancing effort and pay no closing cost?

First of all, there are a couple of things you need to watch out for. One line the mortgage companies love to use is “No out of pocket cost” Think about that for just a second. That’s not the same as no closing cost, is it? In many cases, “No out of pocket cost” means they simply roll the closing costs into your loan, there by increasing your loan balance from the word “Go”. Such a mortgage deal usually isn’t a very good one. You’ll just end up paying not only the closing costs, but the interest on them for 30 years too.

What the heck are closing costs, and why are they part of the mortgage transaction in the first place? You’ll find the closing costs can be under one of four general classifications; government fees (taxes, deed recording, etc.), lender fees (points, loan origination, documents, setting up escrow, underwriting), third party fees (title search and insurance, home inspection, appraisal, etc.), escrow and interest (advance payments for PMI, real estate taxes, interest and insurance).

The lender has little control over third party and government fees, however they have supreme control over their own fees. Do they need to charge you an origination fee, points or doc fees? That depends upon how badly they want your business, and how much they’re making on the back end of the deal. In most cases they’ll sell your loan to another lender on the secondary market. This is known as “selling the paper”. They make thousands of dollars when they do this transaction. The more interest they charge you up front, the more they make when they sell your loan to another lender.

If the mortgage company really is offering to pay all the closing costs, check the interest rate you’re being offered. Is it competitive? In many cases they claim to be letting you avoid paying the closing costs because they’re making plenty of money. At least they’re truthful. They are making plenty of money. That’s because in the vast majority of cases where the mortgage company offers to pick up the closing cost tab for you, they’re kicking up the interest rate a quarter or half a point. In the long run, you’ll typically end up backwards on such a deal.

Take a look at this example: You’re getting a $250,000 mortgage. Closing costs typically run about 4% of your loan, so figure about $10,000. The key to avoiding excessive fees and other closing costs is to ensure you compare the lender’s good faith estimate they provided when approving your mortgage. If you’ve done so, you’ll usually be around the 4% figure. If you’re getting a 6% mortgage, you’ll pay $289,595 in interest over the term of the mortgage. If the mortgage company changes the interest rate to 6.25%, it may not seem like much, but you’ll now pay $304,145. Is it worth saving $10,000 now to pay $15,145 extra in interest over 30 years? It may be depending upon your financial situation.

If your mortgage company rolls the $10,000 into the loan balance, you’ll pay $301,179, or almost an extra $12,000 on a 6% mortgage. If they both up the interest rate and roll in the closing costs, look out! You’ll end up paying $316,311 in interest over the life of the loan, or almost $27,000 more over the life of your mortgage. What can you do with $27,000? It’s up to you. Only you can make the decision which mortgage company to use. The fact is most of them have access to basically the same mortgage products. What, and how, they charge you for them is up to you. Choose your mortgage and mortgage company carefully.

Don't be on the outside looking in. You can know the secrets to refinance with good or bad credit, improve your credit rating so you can get the best interest rate, and manage your debt and credit, go to the Home Mortgage Refinancing Guide.

Article Source: http://EzineArticles.com/?expert=Steve_Faber