Sarasota Real Estate Market News

Homeowners don’t shop for best mortgage deal

CHARLOTTE, N.C. – Aug. 22, 2012 – According to an online LendingTree survey, 89 percent of American adults compare prices when shopping for a big-ticket item but only 51 percent of homeowners with a mortgage comparison shopped for their mortgage. The remaining 49 percent of homeowners with a mortgage accepted the first loan offer.

“It’s important for borrowers to understand that they have the power to choose which loan and which lender to use,” says Doug Lebda, founder and CEO of LendingTree. “It is acceptable to negotiate with lenders and to walk away if you are not fully satisfied. Consumers need to be engaged in the mortgage process to secure the best deal.”

Mortgage rates can vary significantly from lender to lender. LendingTree says the week of Aug. 6, rates varied by as much as 1.5 percent for a 30-year fixed rate mortgage loan. A consumer with a credit score of 759 and a loan amount of $260,000 could have received loan quotes ranging from 3.25 percent to 4.625 percent. By choosing the lowest rate, the borrower would save $214 per month, $2,568 per year and nearly $74,000 over the life of the loan.

In most cases, couples work together to obtain a mortgage, but the study found that twice as many women (23 percent) allowed their spouse to take care of the financial details compared to the number of men (23 percent) who took a backseat. In the 18- to 34-year-old age group, 45 percent of women weren’t involved in the mortgage process compared to 21 percent of women ages 35 to 44 and 16 percent of women ages 45 to 54 years.

“Many people approach the process of getting a mortgage with apprehension, thinking they have very little control of the end result,” says Lebda. “But rushing through the process without comparing loan offers could be a costly mistake.”

This survey was conducted online within the United States by Harris Interactive on behalf of Lending Tree from May 31 – June 4, 2012 among 2,209 adults ages 18 and older, 1,380 of whom are homeowners. The online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

© 2012 Florida Realtors®

October 23, 2012 - Posted by | News related to Financing

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