Nearly Half of Home Buyers Don’t Shop for a Mortgage

Americans may be spending more time shopping for shoes than for a mortgage, a report from the Consumer Financial Protection Bureau suggests. Almost half of consumers seeking a loan to purchase a home do not shop lenders, the agency said Tuesday.

A consumer taking out a 30-year mortgage for $200,000 and paying an interest rate of 4.5 percent will pay about $60 per month more than someone borrowing at 4 percent, and the borrower with the cheaper loan will also build equity faster, the report said …

The survey, conducted in 2014, also found that a majority of home buyers seek information on mortgage choices from sources that have a stake in their decision, like lenders and real estate brokers. Some 70 percent of the respondents said they used those sources heavily. Just 20 percent said they rely heavily on websites, despite the ready availability of mortgage-related information online. A paltry 2 percent seek a lot of information from housing counselors.



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