Many home buyers do not shop around for a mortgage. Failing to comparison shop for a mortgage often means higher monthly payments and paying thousands of dollars more in interest over the life of the loan. A recent survey of mortgage borrowers revealed that:
- Nearly half of borrowers only consider one lender or broker before applying for a mortgage.
- Over three-fourths of borrowers only apply to one lender.
- Lenders and brokers were the most common mortgage information source; with real estate agent also used. Other source of information were websites, financial and housing counselors, friends, relatives and coworkers.
Home buyers should complete an application with multiple lenders or brokers in an effort to get a better deal. Also, ask questions and take actions to help you find the best mortgage for you
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- Have students interview people who own homes to obtain information about the mortgage process they used.
- Have students prepare a data summary of mortgage rates for different lenders in their area.
- What actions can be taken to reduce mortgage costs?
- Describe factors that a person should consider when choosing among several mortgage lenders.