Consumer advertising is a constant presence and much thought actually goes into creating an effective advertisement. The goal of most advertising is to be effective in motivating consumers to take action and spend money. With mortgage advertising, this tends to be an even bigger hurdle to clear because very few people can or will make a quick mortgage loan decision. To overcome borrower hesitancy, mortgage advertising tends to provide carefully constructed messages featuring some major piece of information that will capture the consumer’s eye and encourage her to take the next step.
Mortage Rate Advertisements
Rate advertisements might be the most common type of mortgage advertising. The rate advertisement will feature the mortgage rate as the largest and most important part of the ad or will comment on the rate as being “too low to mention!” or “the lowest in years!” In some cases, rate advertisements feature the rate itself, which will be touted as a lower rate than other companies are offering. This is only partially true, of course, because interest rates are heavily influenced by federal monetary policies and any variations don't necessarily remove the cost from the consumer; it's just placed elsewhere. For instance, if the advertisement highlights a rate of 4.25 percent when the standard rate is 4.5 percent, the lender advertising that rate is probably padding another part of the loan to make up for the rate difference.
The mortgage loan-type advertisement is also designed to catch the consumer’s eye by providing a buffet of loan options, at least one of which will interest the consumer and fit his or her situation. This type of advertisement tends to be simple in composition, with the name of the lender and a box of loan options, each with a link. The simplicity is used to prevent any other distractions. An advertisement containing a list of loan types, in addition to information about rate and other mortgage details will confuse more than motivate the consumer.
Types of Mortgage Loans
A basic advertisement that only highlights loan types will draw consumers who are looking specifically for a variety of loans. The options might include “30-Year Interest Only” loans, “5-Year ARM” loans representing adjustable rate mortgages, “40-Year Fixed” loans or some other variation. There are also as many different types of mortgage loans as there are lender guidelines for borrowers. Always carefully scan an advertised mortgage loan product's small print before inquiring about it.
Pictures of Mortgage Officers
The phrase “mortgage officer” has a very official and important sound to it. Some mortgage ads attempt to draw consumers in by featuring images, real or otherwise, of mortgage officers. These images feature attractive smiling faces with friendly names and easy contact information. By providing only images of mortgage officers, the mortgage company takes a risk because the advertisement does not provide any specifics about the cost to the consumer. This type of advertisement, however, tends to focus on the idea that consumers are more likely to work with something or someone they trust.
- Photo Credit Ariel Skelley/Blend Images/Getty Images
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