Whether you’re targeting homebuyers or current homeowners, finding the right balance of purchase and refi leads can seriously boost your ROI — or drain your budget if you get it wrong.
This guide is built for mortgage lenders and brokers who want to generate better leads, close more loans, and maximize return on every dollar spent.
You’ll learn how each lead type performs, when to prioritize one over the other, and how to use a simple budget calculator to find your perfect mix.
Start here to build a smarter lead buying strategy — and turn traffic into funded deals.
Defining purchase vs. refinance leads: What’s the difference?
Before we dive into budgets and strategy, let’s get clear on the basic terminology.
Purchase leads
These are people looking to buy a home — maybe their first, maybe a bigger one, or even an investment property.
They’re just getting started in the process so they might need more info and guidance.
But the upside? These leads can turn into repeat business, future refis, and referrals if you play it right.
Refinance leads
These leads already own a home and are looking to refinance their mortgage. That usually means they’re hoping for one of three things:
- To lower their rate (rate-and-term refi)
- To pull out equity for renovations or investments (cash-out refi)
- To consolidate debt into a lower mortgage rate
Since they’ve already bought a home, they’re typically further along and can be quicker to close, especially if rates are favorable.
Learn more about buying purchase and refinance leads here!
Key metrics compared
It’s not just about how many leads you get — it’s about how much money each one can make you. Here’s how purchase and refi leads stack up when it comes to cost, conversions, and long-term value.
Average cost per lead (CPL)
- Purchase leads usually cost 15–25% more than refi leads. Why? You’re competing hard during the busy buying season.
- Refi leads can be cheaper, and their CPL can drop fast when interest rates dip or the Fed hints at a cut.
Tip: You can monitor potential refi surges in advance using tools like the CME FedWatch Tool, which tracks the market’s expectations for rate changes.
Conversion rates
- Purchase leads convert at about 2–4%
- Refi leads can jump to 6–10% when rates are low, because the pitch (“save money now”) is simple and powerful
Lead lifetime value (LTV) and downstream revenue
Sure, purchase leads cost more up front — but they pay off in the long run:
- Repeat business: First-time buyers often refi in 2–3 years and move up in 5–7 years
- Referrals: Happy buyers send friends. With the right follow-up, you can get 1–2 referrals per closed loan
On the other hand, refi leads can be generated quickly when rates are right, but they don’t always result in additional business later.
Want a deeper dive into these metrics? Peek at our playbook on mortgage lead generation for benchmarking tips.
Seasonality and pipeline timing
Timing is everything—especially in mortgage. Here’s how seasonality shapes the purchase‑refi dance:
- Peak purchase windows: Spring and summer (March–August) are prime time for purchase leads as listings blossom and school calendars drive urgency.
- Refinance surges: Anytime rates dip by ~75 bps or more, refi search interest spikes—regardless of season. According to Bankrate’s daily mortgage rate tracker, even small rate dips can trigger major spikes in refinance search activity.
- Real‑time budget shifts: Keep a nimble budget. When rates inch down, divert extra spend to refi keywords. When inventory heats up, double down on purchase creatives.
Pro tip: Set up Google Ads alerts to track rate changes in real time — so you can pivot fast. (We walk you through that in our Google mortgage lead gen guide.)
Budget modeling: Build your own calculator to measure ad spend
Guessing your ad budget is a good way to waste it. A basic spreadsheet can help you figure out which leads are worth it — and where you’re burning cash.
You don’t need fancy software. Just build a simple calculator in Excel or Google Sheets using the metrics below.
Key Inputs to Include:
- Lead cost (CPL): Your average cost per lead by source (purchase vs. refi)
- Close rate: Your conversion rate for each lead type
- Average loan size: Purchase loans are often larger, but market-dependent
- Revenue per loan: Broker comp or lender spread
- Marketing overhead: Don’t forget platform fees, CRM tools, and staffing
Running these numbers helps you spot red flags early, figure out break-even points, and scale your budget with confidence.
Optimizing each lead type
Once you’ve got your budget dialed in, it’s time to make sure your website and messaging actually speak to the people you’re targeting. Different leads need different approaches — here’s how to get it right.
For Purchase leads: speak to the dream and the nerves
Buying a home, especially a first one, can feel overwhelming. Your landing page should reassure and inspire.
Here’s what works:
- Use images that show success — happy buyers, keys in hand, or new homeowners walking through the door
- Keep it simple and supportive — explain down payment options, pre-approval, and next steps without the jargon
- Show proof it works — drop in quick reviews, a short case study, or a testimonial carousel
For Refi leads: focus on the savings
Refi leads are looking for clear financial benefits, not inspiration.
Here’s what to include:
- Lead with the math: “Save $243/month” beats “Lower your rate” every time
- Add a basic savings calculator where visitors can plug in their current loan vs. potential new rate
- Mention debt consolidation — rolling in credit card debt can be a game-changer for monthly budgets
Quick SEO wins for both lead types
To bring in more traffic without relying only on paid ads, make sure you’re optimizing your pages for the right keywords:
- “purchase mortgage leads”
- “refinance mortgage leads”
- “cost per lead”
- “mortgage lead generation”
Use them in your headers, image alt text, meta descriptions, and even your URL structure.
Master your content marketing game with the 12 Best Content Marketing Ideas for Mortgage Lenders!
Next steps: building your perfect lead mix with My Perfect Leads
Balancing purchase and refi leads isn’t one-size-fits-all — it’s about staying flexible and making data-backed decisions.
Figure out what’s working. Run the numbers. Build funnels that speak to real borrower needs. Then shift spend when the market moves.
When you’re ready to scale, grab high-quality purchase and refi leads from our marketplace and put your budget to work.
Start buying leads from MyPerfectLeads and fill your pipeline with borrowers ready to close.
