RealtyBizNews - Real Estate Marketing and Beyond
Real Estate Marketing & Beyond
Home » Housing » US Real Estate » Real Estate » Mortgage » Survey: Most home buyers still don't understand their mortgage terms

Survey: Most home buyers still don't understand their mortgage terms

By Mike Wheatley | June 22, 2020

Mortgage documentation is too cumbersome for far too many homeowners, according to a survey carried out by the home remodeling website

The survey of almost 1,000 recent home buyers found that more than 75% said they didn’t completely understand the terms of their mortgage. Moreover, some 30% admitted to reading none or only some of the terms, and said they regretted not reading the documentation entirely. And 57% of buyers said they only went to family members for advice, rather than a lender or a financial planner.

Many homeowners have similar regrets about not reading through their home insurance policy properly, the survey found. Almost 37% said they read none or only some of their policy before signing it. And another 37% said they didn’t completely understand what the policy does and does not cover.

Interestingly, most home buyers do rely on other people to check various items for them throughout the mortgage application process. The survey found that 61% of respondents usually asked another person to read over the documentation before signing it.

However, a lack of due diligence when reading the fine print, or leaving the decision to others, makes buyers less confident, the survey found. said first time buyers are three times more likely than repeat buyers to feel unprepared when it comes to buying a home.

“Whether you’ve bought 10 homes or zero, research, not experience, is crucial for home buying,” the study noted. “Regrets and expensive financial mistakes were not often due to inexperience, but instead not taking the time to consult experts or research better options.”

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected].
  • Sign up to Realty Biz Buzz
    Get Digital Marketing Training
    right to your inbox
    All Contents © Copyright RealtyBizNews · All Rights Reserved. 2016-2024
    Website Designed by Swaydesign.
    linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram