UNCATEGORIZED

Research or referral? Income steers loan shopping methods

Jan 6, 2014, 7:18 AM | Updated: Mar 4, 2016, 5:47 am

High income earners shop for mortgages distinctly different than lower income earners, a new Fannie Mae study found.

Higher income borrowers – those who earn more than $100,000 a year – are more likely to use mortgage calculations to determine how much to borrow in guiding their decisions. They’re also more likely to choose a lender based on how competitive the lender is for their business.

On the other hand, lower income borrowers – those who earn less than $50,000 – are more likely to rely on real estate professionals, mortgage lenders, family, and friends for advice and recommendations while shopping for a mortgage. Lower income borrowers report that shopping for a mortgage would be easier if they had a better understanding of loan terms and costs.

Higher income borrowers, meanwhile, said shopping for a mortgage would be easier if they had a better ability to compare multiple loan offers.

Higher income borrowers tend to use online shopping about double the amount than lower income borrowers, according to the Fannie Mae study. But all borrowing groups surveyed said they’d like to increase their use of online shopping tools to aid them when looking for a mortgage, such as comparison tools and product reviews.

“Enhanced online tools, especially given the aspiration to use them much more often in the future, could help consumers of all incomes to become better mortgage shoppers and achieve better outcomes by addressing the issues they think will make the process easier, such as enhancing their understanding of mortgage terms and costs and their ability to make simultaneous comparisons of loan terms from multiple lenders,” said researcher Steve Deggendorf, Fannie Mae’s director of business strategy.

Thorough mortgage shopping is important because it helps borrowers get lower costs and “fewer surprises at the loan closing table and higher long-term satisfaction with their choices,” Deggendorf said.

Uncategorized

kent trooper shot...

Kate Stone

Man faces multiple charges after WSP trooper shooting in Kent

A man accused of shooting a Washington State Patrol trooper multiple times in Kent last Friday has been charged.

1 month ago

Oregon Emergency Landing - (Elizabeth Le via AP)...

KIRO 7 News Staff

‘Everyone was eerily calm,’ recalls passenger aboard ill-fated Alaska Airlines flight

Terror in the skies: A Vancouver, Washington, woman shares the harrowing moments after an airplane blowout over Portland.

3 months ago

Photo: SPD vehicle...

KIRO 7 News Staff

Two men shot at bus stop in North Seattle near Northgate

Two men were shot at a bus stop along Aurora Avenue Wednesday, according to the Seattle Police Department.

5 months ago

Manuel Ellis arrest, Tacoma police officers...

Associated Press

Prosecutors focus on video evidence in trial of Washington officers charged in Manny Ellis’ death

A cellphone video of the 2020 fatal arrest of Manny Ellis shows the Black man on the ground with his hands in the air in surrender

6 months ago

...

No Author

EXPIRED: Win tickets to see Stokley at EQC!

KIRO Newsradio is giving you a chance to win two tickets to see Stokley at the Emerald Queen Casino on Saturday, November 11, 2023!

6 months ago

(File photo)...

L.B. Gilbert

NLRB files complaint against Amazon for unlawful confidentiality agreement

A new complaint from the National Labor Relations Board (NLRB ) is accusing Amazon of requiring some corporate employees to sign an unlawful confidentiality agreement. The complaint states Amazon had required a former employee from its drone project, Amazon Prime Air, to sign an agreement that forbade discussion of information regarding Amazon, whether or not […]

7 months ago

Research or referral? Income steers loan shopping methods