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The ABCs of small commercial mortgages
Potential homeowners—learn more about your mortgage optionsMortgagePress.comMortgage surveys
According to survey results released by Radian Guaranty Inc., a
Philadelphia-based provider of mortgage insurance products and
services, 52 percent of all U.S. homeowners said they were not at
all or only somewhat knowledgeable about the mortgage options
available to them at the time they purchased their homes. Harris
Interactive, a market research firm based in Rochester, N.Y.,
conducted the survey on behalf of Radian.
"These survey results suggest that lenders and others in the
financial services arena have a real opportunity to help Americans
by educating them about their personal finances, particularly the
many mortgage options available to homebuyers," said Mark Casale,
executive vice president of mortgage insurance for Radian. "A home
is generally the largest purchase individual Americans will ever
make, and they have a right to know how to find and negotiate the
best deal they can make for themselves."
According to the survey, two-thirds of Americans own their homes
and 47 percent have a home mortgage.
Among all homeowners, only 48 percent said they were
knowledgeable or very knowledgeable about the mortgage options
available to them when they were purchasing their homes. Those
claiming to be knowledgeable or very knowledgeable about mortgage
options were most likely to be homeowners over the age of 55 (55
percent), divorced, widowed or separated (54 percent) and have at
least a college education (51 percent). In general, similar
proportions of male and female homeowners said they were
knowledgeable or very knowledgeable on the subject at the time of
purchase (46 percent and 49 percent, respectively).
Slightly larger proportions of homeowners in the Northeast (50
percent) and West (50 percent) consider themselves knowledgeable or
very knowledgeable about mortgage options, as compared to
homeowners in the South (46 percent) and Midwest (45 percent).
Fifty-one percent of homeowners who had secured a mortgage on
their primary residence within the last two years felt
knowledgeable or very knowledgeable about mortgage choices, while
59 percent of homeowners who secured a mortgage three or more years
ago felt not at all or only somewhat knowledgeable.
"In recent years, many more mortgage options and financing
choices have been made available to homebuyers. It makes sense that
those who purchased or refinanced a home recently would feel more
knowledgeable about their mortgage options than those who have
not," said Casale.
Advice to new homebuyers
When asked what advice they would give to a prospective homebuyer
about the process to obtain a mortgage, homeowners said that first
and foremost, homebuyers need to understand just how much of a home
they can afford to purchase (55 percent mention this as the first
or second piece of advice they would give), followed by researching
and determining the best mortgage options available that would suit
their needs (45 percent) and getting pre-approved for a mortgage
before searching for a home (36 percent).
"Homeowners in this survey have the right idea," said Casale.
"Those who are entering the market for the first time or who are
looking to move up need to first determine what they need in a home
and how much home they can afford. Certainly, having the foresight
to get pre-approved will help prospective buyers focus on the right
price range for their home buying search."
For more information, visit www.radian.biz.
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