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 according to a survey. 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…]