The economy is still struggling after all these months, and the mortgage industry is just starting to get back on its feet. Dishonest, greedy mortgage brokers who have tarnished all of our reputations have been weeded out and only the strong and honest brokers are left standing. During this stage of economic instability, every client counts more than ever. This is the perfect time to look for additional products that you can add to your portfolio to entice prospective or former clients to work with you. One product I have in mind is a bi-weekly mortgage acceleration program.
Bi-weekly mortgage acceleration programs work by dividing the monthly mortgage payment in half. Every other week, a half payment is collected from the client’s bank account. Each month the program’s administrator will send a whole payment to the lender, and about every six months, an extra half payment will be included with the whole payment and applied directly to the loan’s outstanding principal balance. As a result, the client can save, on average tens of thousands of dollars in interest and shorten their mortgage terms over the life of the loan. Now that you know how bi-weekly mortgage acceleration programs work, let’s discuss how it can benefit you and your clients as well.
When you enrolled your clients into a bi-weekly acceleration mortgage program, you will earn additional money from commissions. You already have all the client’s loan information on hand, so signing them up will be a breeze and usually takes about 15 or 20 min. to complete the paper work. Some bi-weekly companies even offer residual income on all accounts as long as they remain active in the program. Another advantage to these programs is that you can contact your former clients and introduce them to the biweekly mortgage acceleration concept, which might even lead to additional refinance business or to a referral for a new loan.
Bi-weekly mortgage acceleration programs are also a great benefit to your clients. They generally pay a small fee to the administrator for collecting the half payments, but they are saving literally tens of thousands of dollars in interest charges over the life of the loan. There is also an advantage to using an independent bi-weekly mortgage accelerator company versus signing up for a bi-weekly option with the lender. If the clients decide to refinance or buy another property they can transfer the program to the new loan for little or no additional cost. Another benefit to the programs is the elimination of late payments and their penalties and fees. The client’s only concern is to make sure their checking account is funded and the administrator is made aware of any changes to the loan.
Selling a bi-weekly mortgage acceleration program cannot be your only source of income but it will let you make extra money on the side. Additionally, your clients will thank you for thinking of them and helping them save money in the long run.
Linh M. Au is a marketing coordinator for Tower Administrative Services Inc. She may be reached at (877) 218-7281, ext. 242.