Mortgage insurance is an insurance policy, secured by a borrower, that guarantees a mortgage loan will be paid back to the lender. Even if a borrower were to default on their mortgage loan, their mortgage insurance would ensure that the lender still receive their payment. Many borrowers, whom would be considered ‘high risk’ or do not wish to put down a 20% down payment on their mortgage loan, may be required to obtain mortgage insurance. Mortgage insurance works to make a loan a minimal risk to a lender and ensures that the loan will be paid.
Many insurance agents may find themselves interested in generating additional income by offering clients mortgage insurance. Since mortgage insurance is required in a great number of loans, offering such insurance could open many opportunities for career advancement. Mortgage insurance can be a profitable source of revenue, as long as the insurance agent is properly advertising to the correct target market.
Three Ways To Generate Mortgage Insurance Leads:
1. Direct Mail. It is possible for an insurance agent to obtain mortgage insurance leads from a direct mailing lead generation company. These companies require an agent to pay a fee and will then generate an agreed number of leads. These leads will then be mailed, in a bulk mailing format, a solicitation for mortgage insurance. This can be a beneficial option for a busy insurance agent, as it requires very little time. However, this option can also be rather expensive. If it were to pay off and the agent were to see an increase in business, this would make direct mailing a profitable option. Unfortunately, in a lot of cases, these mailings get discarded by the recipients, since they often seem like ‘junk mail’ or a pesky sales pitch.
2. Option Leads Through A List Broker. A list broker will offer to find an insurance agent a list of possible mortgage insurance leads for a fee. Once this list is received, an insurance agent can send a personal letter or insurance proposal through either regular mail or by e-mail. While e-mail is the most affordable option, many insurance agents will notice that regular mail is largely more effective. Sending a mortgage insurance proposal, in first class mail, in an ordinary envelope, is the simplest way to ensure that the letter actually is received and opened. When a letter is inconspicuous and does not look like regular junk mail, it has a greater chance of being read, and catching the attention of the reader. Once an agent has seen an increase in business, he or she may then decide how many leads are required to achieve the maximum profit.
3. Generate Leads Through A Website. It is possible to generate mortgage insurance leads through a website. This may require some skill and may also vary in the expenses required. Generally these mortgage insurance leads will be generated by interested parties filling out a preliminary form for rates on mortgage insurance. The personal information gathered from these forms on the agent’s website will then be sent to the insurance agent, so that contact can be made. If an insurance agent is willing to invest in a professional website and in advertising their website, these leads can be very profitable, since the leads gathered obviously have an active interest in obtaining mortgage insurance.
The Most Cost Effective Way To Generate Mortgage Insurance Leads
Many may argue that generating leads online is the most cost effective option. The leads gathered will be very interested in obtaining mortgage insurance, and an insurance agent will not have to waste time chasing uninterested leads. However, generating leads online either requires an investment or a large amount of time spent advertising. Whether this makes a website the most cost effective way to generate mortgage insurance leads, is up to the insurance agent.
Using a list broker and personally mailing leads a mortgage insurance proposal, is both simple and profitable. While it does require that some time be spent advertising, it can be very effective. When an insurance agent begins to receive a response from the proposals sent to the leads generated by the list broker, he or she may then decide how many leads need to be generated and whether this is a cost effective advertising option for them.
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