by Jeff Sovern
A new Fannie Mae survey reports that nearly half of lower-income respondents and more than a third of higher-income respondents obtain quotes from only one mortgage lender. The survey also confirms findings in other reports that "a substantial portion of all consumers do not understand key mortgage elements." In particular, 41% of borrowers were not able to say the highest monthly payment required under an adjustable rate loan–a number that is relevant to figuing out whether the loan is affordable. More and more, mandatory mortgage counseling looks like the way to go.
I don’t understand why people insist on buying a home if they don;t even know what they are getting themselves into. I think a class on personal finance and credit would be a great tool for most people. It is imperative that you have a firm understanding of the documents used to make sure that you are getting the best deal possible and are not being taken advantage of.