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MORTGAGE SHOPPING?
August 13th, 2019 1:44 PM
According to Fannie Mae's chief economist, repeat home buyers are less likely to get more than one quote when shopping for a mortgage. First time buyers were more likely to shop which raised the overall average # of quotes obtained by home buyers to 2. Only a fraction of those who got only 1 quote expressed regret. It is obvious that mortgage shopping can be a complicated and time-consuming  endeavor because it means looking at several interrelated components, e.g., rates, fees, points and assumptions about how long the borrower will stay in the mortgage. Advertised quotes are often "teasers" while a true quote is based on variables that are unique to each home buyer and can be evaluated differently by each lender. Fannie Mae shows that consumers of all backgrounds lack knowledge about mortgage basics. Remember, competition  only works if consumers assess their options. Consumers should realize that one can save thousands of dollars by getting multiple mortgage quotes. Building their knowledge may motivate more home buyers to comparison shop. 

Posted in:General and tagged: mortgage/buyers/loan/
Posted by Richard Wayne Abatelli on August 13th, 2019 1:44 PMPost a Comment

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