Consumers may love GroupOn and other ways to save money while shopping, but when it comes to getting a mortgage, a survey found that borrowers fail to comparison shop and often lock in their first home loan offer.
Conducted by Harris Interactive on behalf of LendingTree, the survey results show that only 28 percent of borrowers are very confident they received the best possible deal on their mortgage. It also revealed that 85 percent of consumers use the web to comparison shop, yet just more than 1 in 5 (21 percent) shopped online first for mortgage rates. Additionally, although nearly 40 percent obtain just one home loan quote, more than 9 in 10 borrowers (91 percent) understand interest rates vary between lenders.
“Choosing a mortgage is probably the most important financial decision most of us will ever make, yet many consumers simply take the first offer that comes their way,” said Doug Lebda, Chairman and CEO of LendingTree. “It’s a gamble that leaves many borrowers uncertain they’ve received the best deal on their mortgage. Our research clearly shows that home buyers and homeowners need help navigating the often complex world of home loan financing. LendingTree strives to simplify the process and instill confidence by offering services like our Best Deal Guarantee, lender ratings and reviews, and the opportunity to compare multiple offers. At the end of the day, 30 years is too long to be in the wrong loan.”
The survey also found that 70 percent of borrowers find shopping for a mortgage frustrating, citing the complexity of the terms (21 percent) and time-intensiveness nature of the process (20 percent).
Though it is a decision that will affect them for the next 15 – 30 years, nearly three-quarters (72 percent) of homeowners spent the equivalent of a full working day or less shopping for their home loan. Even more shocking? One in ten spent the amount of time it takes to brush their teeth.
LendingTree also published an interesting info-graphic, you can see a larger version here.