Are you leaving money at the table?
In a recent study conducted by the financial giant Fannie Mae, Americans have been shown to be making poor choices about their mortgages. Many don’t understand their available options on the market while others simply don’t conduct enough research. Regardless of the reasons, these borrowers are paying more for their loan than they need to, and the data shows this can lead to problems later during the course of the loan.
Given today’s unpredictable home mortgage interest rates, homebuyers seeking a mortgage who don’t obtain multiple offers or cautiously compare them are wasting their hard earned money. Purchasing a home is one of the largest decisions an individual or family can make, if the borrower doesn’t understand the details of the mortgage, he or she may find himself or herself in deep water many years later.
Fannie Mae wanted to better understand the decision process trends of borrowers across several different demographics. Their study showed almost half of lower income borrowers only obtained one quote for their mortgage before making a decision, and typically left more than 1,000 dollars on the table. In comparison, three quarters of higher income borrowers reported different competitive offers had the largest influence on their purchasing decision.
Fannie Mae’s research also showed higher income consumers were more comfortable using various technologies in the quote acquisition. These technologies included research conducted over the Internet as well as mobile phones. Furthermore, across all income levels borrowers were more reluctant to use mobile devices to obtain quotes or purchase mortgages in comparison to other means.
The results of the survey alluded to a significant amount of borrowers who didn’t fully understand the fundamental aspects of mortgages as a whole. When participants where asked to approximate the percentage ceiling of how much a typical adjustable rate mortgage could increase during the lifespan of the loan, more than 42% of the participants failed to give an answer.
Working closely with me as your Panama City Beach Realtor, will help you avoid leaving money at the mortgage table. The lenders I work with will ensure you get mortgage options that fit your budget without leaving you mortgage poor.
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