Mortgage Lead Costs

What's the current cost of a mortgage lead? It all depends on the source, of course. The mortgage lead offers continue to pour in here, although I have no current use for them. It's amusing to see that while I am not involved in mortgage business, someone or something (a bot, perhaps) is convinced that I can connect lenders to borrowers. Lets be clear about this. I'm interested in the lending market as it pertains to the overall health of the economy. As much of my research falls into the untapped tea leaf category, it's quite possible that the tracking of mortgage lead costs can provide valuable insight into this key economic sector.

I look at the cost of the mortgage leads that roll into my inbox and quite honestly, I'm amazed at how inexpensive they are. Cheap is cheap, however ... you always get exactly what you didn't pay for. One can't expect a high conversion rate from a list of low quality leads.

When E*Trade, a -- "global financial services leader, delivering value and innovation to millions of customers in more than 40 countries worldwide" -- launched a new lead-based affiliate program (through Commission Junction) for their mortgage business this week, I took notice.

This is no boiler-room operation.

E*Trade's terms are eye-opening, with significant bounties for completed mortgage applications:

• Mortgage purchase application - $15
• Mortgage refinance application - $40
• Mortgage pre-approval application - $15
• Home equity application - $40

It's clear to see what a clean mortgage lead is worth to E*Trade.

And the rest of the big lenders?

I'll post a summary shortly ...