Don’t Pay For Those Mailed Marketing Services

After purchasing a home, your mailbox can quickly fill up with offers and solicitations from companies eager to sell products or services. Based on a study I conducted, many of these offers may not be worth the expense—and in some cases, there are free or low-cost alternatives available.

Before spending money on these solicitations, consider consulting with your mortgage professional to evaluate whether these services are necessary or if better options exist.

Below this video is the list.

Services and Number of Mailings

1. Biweekly Payment Provider: 1 mailing. Skip this service. You can achieve the same benefit by making one extra mortgage payment per year. The fees for a payment plan often cancel out any savings.
2. Cable/Internet Providers: 1 mailing.
3. Extra Mortgage Insurance: 5 mailings. I say, buy a separate term policy. Your beneficiary can use the money as they see fit, and it may not be on the mortgage, giving him or her options.
4. Free Smartphone: 1 mailing. Not sure what the gimmick is, but companies have to pay for the mailing somehow.
5. Refinance Solicitations: 2 mailings.
6. Hair Club: 1 mailing. I need to call these folks.
7. Record Retention: 3 mailings. This one kills me. They advertise to provide a copy of your deed for the low cost of $86—this is free in public records!
8. Termite Warranty Plans: 2 mailings.

Businesses typically get homeowners’ information from public records, such as the deed to a property and the recorded mortgage. Don’t be alarmed, as these documents do not disclose sensitive material such as Social Security numbers and dates of birth. In most cases, however, they do list the following:

• Name
• Property Address
• Mailing Address
• Purchase Price of Home
• Loan Amount
• Date of Purchase/Mortgage
• Marital Status

I suspect marketing companies compile and sell this information to service providers, as evident by my own experience.

So what have we learned here? If you recently closed on a home, do yourself a favor and consult with your mortgage professional before paying for any of the above services. 

Within the first 30 days of closing on a home, Florida Mortgage Firm President, Nate Davis, received these solicitations in the mail.