Another bit of headline news that I find interesting, in a "duh" sorta way. A recent survey by Zillow Mortgage Marketplace shows that homebuyers lack knowledge about mortgages.
Specifically, 57% of prospective homebuyers admit they do not understand how adjustable rate mortgages work.
Well I don't understand them well either. Over the years, I've been to numerous, and I mean numerous educational programs from lenders who explained all of the great ways to finance a home. Some of the information and "programs" no longer exist today, for good reason! While I understand the concept of an adjustable rate mortgage, I would need a full unedited explanation before I ventured into such a program. I think 57% of homebuyers agree with me.
Really, with the fixed rates at under 5.5% for months now, why the heck would anyone want an adjustable rate? No wonder people don't understand them, especially now!
And with all of the advertising for really amazing mortgage programs on tv by the "hood wink and see ya later" crowd, I wouldn't claim to understand mortgages either.
Normal homebuyers are much more likely to trust and engage with a mortgage program that seems "normal" and easy to understand. There are plenty of good lenders, in every marketplace, that can help you get a "normal" mortgage. You either qualify, or you don't. If you don't, then work on getting your personal situation in order so you can qualify for a "normal" mortgage.
I'm not so sure it's all that important to point out how people don't understand adjustable mortgages in our current market.
So what's the right question to ask homebuyers? How about "do you have a trusty mortgage lender in your contact list"? If not, I can give you a few good ones to chose from.
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