Ditech : Reverse Mortgage Leads

Reverse mortgages are a booming industry in which people are buying and selling property at lightning speed every day on the market. It is a great way to make money. Reverse mortgage leads are details about prospective customers made available to reverse mortgage agencies. The most convenient way for a reverse mortgage firm to secure reverse mortgage leads is by getting information from any of the various mortgage lead-generation services available. The information obtained often directs the agencies to the most worthwhile customers.

Commendable and efficient services add value and credibility to the firms providing leads. Reverse mortgage leads can be obtained from the Internet and other mediums, such as telemarketing and call centers.

Reverse mortgage leads are also provided by individuals who work in the field as freelancers. The leads are sold to various companies at very competitive and affordable prices. The right reverse mortgage leads can facilitate business for a reverse mortgage firm.

While looking for reverse mortgage leads, it will be worthwhile to check at least three different lead-generating firms or sites. As the amount and charges may vary with different companies, it is better to rely on one of the firms after gaining thorough knowledge.

Reverse mortgage lead providers work untiringly to formulate a database of prospective reverse mortgage customers. Readymade reverse mortgage leads help minimize the time and effort actually needed to be put in by reverse mortgage companies. These leads also help the companies spend more time in actual business dealings than in qualifying and finding prospective borrowers or customers.

Ditech : Mortgages: What is the Difference Between Term and Amortization

When you arrange a mortgage to help you with the purchase of a property, you will negotiate the details with your lending institution. Two of the items you will decide on will be term and amortization.

The term of your mortgage will be the length of time that you will be "locked in" to certain payments at a specific interest rate. For example, if you choose a "5 year closed mortgage term", this means that you will have mortgage payments of a certain amount for 5 years. At the end of 5 years, you will have to either pay the remaining amount owing to your mortgagee*, or renegotiate your mortgage. This length of time is usually between 6 months and 5 years, although there are some lending institutions that will offer mortgage terms of 7 or 10 years.

If you choose to either renegotiate your mortgage or pay out your mortgage before the end of your term, you may have to pay a penalty, depending on the agreement contained in your Standard Charge Terms*.

The amortization of your mortgage is the length of time that it would take you, at your current payment and interest rate, to pay your mortgage in full. This amount of time is usually 20 or 25 years, when you first arrange your mortgage. As you progress through the years of payments on your mortgage, if you keep your payments similar, the amortization of your mortgage will decrease.

Let's say you have arranged a mortgage with a lending institution for $150,000.00 for a 5 year term at an interest rate of 6.5%, with an amortization of 25 years. You have agreed to make monthly payments of $1,004.74 on the 1st day of every month. At the end of 5 years, you renegotiate with your lending institution. They will continue to hold your mortgage for an additional 5 year term at the same interest rate. By keeping monthly mortgage payments of $1,004.74, you now have an amortization of 20 years.

* For a more detailed description of these mortgage terms, read the article, "Common Mortgage Terms".