According to a survey in 2014, a majority of home buyers seek information on mortgage choices from sources that have a stake in their decision, such as Real Estate agents and bankers. Only 20 percent of the people surveyed said they rely heavily on websites, despite all of the free mortgage related information on the internet. Even worse only 2 percent seek a lot of information from housing counselors.
Americans may be spending more time shopping for cars, a TV, or new pants than for a mortgage, a report from the Consumer Financial Protection Bureau suggests. Half of consumers seeking a loan to purchase a home do not normally shop lenders.
This will cost the consumer on average around $60 more per month on a 30-year mortgage for $200,000 at an interest rate of 4.5 percent versus someone comparing online and borrowing at 4 percent. In addition, the borrower with the less expensive loan will also build equity faster according to the report. [Read more…]