For lenders evaluating Encompass mortgage software, buyers often focus on total cost, ongoing expenses, and implementation time. This guide breaks down typical cost ranges, price drivers, and budgeting tips to help institutions plan effectively. The main cost factors include licensing, implementation, training, and ongoing maintenance.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Initial Implementation | $8,000 | $15,000 | $25,000 | Consulting, data migration, configuration |
| Monthly License / Subscription | $40 per user | $75 per user | $120 per user | Per active user or per seat |
| Annual Maintenance & Support | $6,000 | $15,000 | $25,000 | Typically a percentage of list price |
| Training | $2,000 | $5,000 | $12,000 | Onsite or virtual sessions |
| Data Migration & Integration | $3,000 | $10,000 | $30,000 | With LOS, CRM, or imaging systems |
Overview Of Costs
Cost of Encompass mortgage software depends on organization size, user count, and deployment model. In a typical scenario, a small to mid sized lender may see a total first year cost in the range of $60,000 to $110,000, with ongoing annual expenses of $40,000 to $120,000. For larger lenders with hundreds of users, the first year can exceed $300,000 when factoring extensive data migration, custom integrations, and multi site validation. Assumptions: region, specs, labor hours.
Cost Breakdown
| Columns | Materials | Labor | Equipment | Permits | Delivery/Disposal | Warranty | Overhead | Contingency | Taxes |
|---|---|---|---|---|---|---|---|---|---|
| High level | Software licenses + integrations | Consulting, project management, data mapping | Servers or cloud capacity | Implementation approvals | Migration of data | Support plan | Project overhead | Buffer for scope changes | Applicable taxes |
What Drives Price
Licensing model affects total cost. Per user subscriptions tend to scale with headcount, while tiered enterprise pricing covers multiple modules. Assumptions: region, specs, labor hours.
Pricing Variables
Key drivers include number of loan officers, volume throughput, data migration complexity, and required integrations with LOS, document imaging, and CRM. For example, high volume shops may incur higher data migration and integration costs, while smaller shops may pay less for baseline licenses. A typical mid market shop might see implementation costs in the range of $12,000 to $20,000 plus $60 to $100 per user monthly.
Regional Price Differences
Prices for Encompass can vary by region due to labor rates and data center costs. In the Northeast, implementation and consulting may be 5–15 higher than the national average, while the Midwest often comes in near the average. The Southeast may show moderate variation, and West Coast deployments can carry higher cloud and support fees. Despite regional differences, the per user monthly rate tends to cluster around $60–$100 in most markets.
Labor, Hours & Rates
Implementation hours depend on data complexity and integrations. A basic rollout might require 80–120 consultant hours, while a full scale deployment with custom rules and integrations can span 200–400 hours. The implied cost would be data-formula=”hours × rate”> based on consultant rates typically in the $100–$180 per hour band.
Extras & Add Ons
Hidden or optional costs can include advanced reporting, specialty compliance modules, additional security audits, and ongoing integration maintenance. Expect possible add ons like document capture enhancements or E signature workflow packs to add $5,000 to $20,000 upfront and monthly fees in the $200 to $900 range depending on usage.
Real World Pricing Examples
Basic scenario: 20 users, standard LOS integration, no custom rules. Initial setup $12,000, monthly $40 per user, annual maintenance $8,000. Total first year around $40,000. Assumptions: standard configuration, typical data volumes.
Mid-Range scenario: 60 users, two integrations, moderate customization. Initial setup $18,000, monthly $65 per user, annual maintenance $15,000. Total first year around $110,000. Assumptions: 2 integrations, moderate customization.
Premium scenario: 200 users, multiple integrations, custom automation, enhanced security. Initial setup $40,000, monthly $95 per user, annual maintenance $40,000. Total first year around $260,000. Assumptions: enterprise scale, complex data migration.
Ways To Save
Choose cloud deployment to reduce on site hardware costs and speed time to value. Cloud pricing often shifts a portion of the upfront into ongoing subscriptions, which can simplify budgeting. Assumptions: single data center, standard compliance needs.
Cost Compared To Alternatives
Encompass competes with other mortgage ERP and LOS solutions. Some alternatives offer lower upfront costs but charge higher monthly fees or require more extensive integrations later. When evaluating price, consider total cost of ownership across 5 years, including maintenance, upgrades, and potential retraining costs.
Seasonality & Pricing Trends
Pricing for mortgage software tends to be steadier than consumer software, but quarterly business cycles can influence implementation capacity and discounts. End of fiscal quarters and budget cycles may present favorable terms or phased payment options.
FAQs
Is there a separate fee for updates? Yes, most plans include maintenance that covers updates, but major version upgrades or premium features may incur additional charges. Assumptions: standard maintenance package.
Can I pay monthly or annually? Both options exist, with annual commitments typically providing a discount. Assumptions: enterprise level license.