We aim to maintain a complete glossary of terms and definitions relating to the mortgage lead industry. Our goal is to create a database that is accessible to newcomers as well as useful to more experienced brokers. We will be regularly adding to this resource with valuable new insights into terms and definitions relating to the lead industry. To stay up to date, subscribe to our RSS feed.

The most common method of repaying a mortgage. It involves montly payment of both interest and capital over a fixed term (eg 30 years)

Cost of credit as yearly interest rate. This includes the interest, discount and other costs.

Interest rate on a loan that is adjustable to the current rate, not fixed at a specific rate.

A business that has expressed interest in refinancing its property for a lower mortgage rate.

This refers to the percentage rate at which a given type of home mortgage refinance lead converts into a closed sale. A closing rate of about 20% is very respectable. When you buy mortgage leads, the more expensive leads will have a better conversion rate, while cheap mortgage leads may require more effort in order to convert.

These home refinance mortgage leads are confirmed by tele-representatives twice over the phone to make sure that the lead is interested in refinancing. This is considered to be a much more effective way of generating high-quality mortgage leads than the single-verification process.

The ratio expressed as a percentage when a borrower’s gross monthly debt payment obligation is divided by their gross monthly income.

This is calculated as the value of a home minus the outstanding balance of any debt or mortgage secured on or by the home.

A lead that is only sold to one person/business/broker.

A standard credit score scale that banks, lenders, and other financial institutions use to gauge risk they the borrower will default on payments.

A closed-end mortgage loan on a borrower’s principal residence. This load is usually sought for home improvements, major purchases or expenses or debt consolidation.

These refinance leads are generated online by homeowners who fill out forms. These leads tend to have a very strong conversion rate because they connect lead generation companies with individuals that are interested in refinancing enough to fill out a form. Mortgage lead generation companies that do their own internet marketing to get homeowners filling out these forms tend to produce very high-quality, exclusive mortgage leads. Buy mortgage leads from these companies rather than those who get all their leads from credit companies or telemarketing.

This is a refinance mortgage lead for a jumbo mortgage. “Jumbo” refers to a non-conforming mortgage, or rather, one that is larger than the purchasing limit set by Fannie Mae and Freddie Mac. California mortgage leads are often jumbo leads due to the high cost of living and value of property on the west coast.

This is the process whereby skilled lead generation companies acquire home refinance mortgage leads for mortgage brokers. This allows brokers to save time on tracking down leads, and avoid dealing with dead ends. Ideally, lead generation sources come up with leads that are pre-qualified, fresh, and exclusive. Using a lead generation service can be particularly helpful in terms of helping brokers get into flooded markets like the California mortgage leads market.

A lead that is delivered to you live on the phone. Typically, the lead is called and an appointment is set up for a time when they will be available to talk at length about the financial services they are in need of. The lead is then called back and transferred to your home/cell phone at the appointed time, ensuring that there is genuine interest and availability.

The loan amount in as a divisor to the total price of the home expressed as a percentage (eg, a loan amount of $100,000 divided by the appraised value of $120,000 equals an 80% LTV).

A lead that is sold more than once, creating competition between the businesses/brokers the leads are sold to. These leads are typically much cheaper and can be very effective if you are sure you have the best service.

This is the conditional establishment of a borrower’s qualification for a mortgage loan amount and the ability to not default on payments. The conditional statement is based on debt-to-income ratios and is subject to debt and income verification, credit history, property appraisal and other factors.

The original amount of a mortgage, not including any other charges, such as interest.

A type of loan offering available to homeowners. A traditional mortgage product might be a fixed rate or adjustable rate mortgage, while a nontraditional mortgage product would be a payment option ARM, or an interest-only mortgage loan. Nontraditional mortgage products paved the way for the rush of cheap mortgage leads enjoyed by brokers in the early 00’s.

This process entails securing a new loan on a property that has already been loaned against, and using this new amount to pay off the previous loan. The borrower can use a cash-out refinance to get cash for legal purposes from the loan amount.

An individual who has expressed interest in refinancing their home for a lower mortgage rate.

This is a unique type of loan available only to senior homeowners with a lot of equity invested in their home. When brokers connect with this type of homeowner thanks to a home mortgage refinance lead, they can help the homeowner stop making mortgage payments, and instead, start receiving monthly amounts based on their home equity. These loans do not have to be repaid until the home is sold, and can be a great way for elderly homeowners to enjoy the equity they have invested in their home while still living in it.

When borrowers need larger loan amounts than they currently have, they can take out a second mortgage on top of, and subject to, a first mortgage. This “junior mortgage” is generally used in cases of combination financing.

This is a type of mortgage that became popular in the 1990s. It charges a high rate of interest to borrowers who would not normally qualify for loans due to bad or nonexistent credit histories. It can be considered good because it gives people a chance to own a home who would not normally get that chance, but it can also be considered bad because it leads to increased instances of defaults and foreclosures. Subprime mortgage borrowers who have proven themselves can often be a great source of home mortgage refinance leads.