Bankrate Mortgage Poll Says 34% of Homeowners Don’t Know the Type of Mortgage They Have
Bankrate, Inc. (NASDAQ:RATE) has recently released a new Bankrate.com poll which found that more than three in ten homeowners (34%) do not know what type of mortgage they own. Furthermore, 28% of those surveyed worry about how they will afford their payments. The national poll reveals the confusion and anxiety that homeowners are experiencing today. To view the complete results, go to the results on their web site.
Another notable finding is that 34% of homeowners with adjustable rate mortgages (ARM) do not know what they will do when their loan readjusts. Given that homeowners could be looking at an increase of several hundred dollars each month, this is a staggering statistic.
“Clearly, many homeowners are uninformed about their mortgages,” said Greg McBride, senior financial analyst at Bankrate.com. “With interest rates stabilizing, it’s a very good time to assess whether they should refinance or not. Now may be the time to lock into a mortgage with a fixed rate which remains near historic lows,” Mr. McBride added.
Other key findings of the poll include:
Homeowners
* 36 % who now have an Adjustable Rate Mortgage (ARM), plan to refinance to a fixed-rate loan when their ARM changes.
* 28% of those surveyed worry either regularly or sometimes about how they will afford their payments next year.
* 57% of homeowners polled have a fixed-rate mortgage
Renters
* 40% consider affordability the biggest obstacle in buying a house
* Just under 12% are concerned their credit rating is not high enough to purchase a home
* 38% would avoid taking out an ARM when they are ready to purchase a home
The study was conducted by the polling firm GfK Roper via telephone among a nationally representative sample of 1,004 adults, aged 18 or older. The sample was collected March 16-18, 2007, using a Random Digit Dialing Methodology. The data is weighted by age, sex, education, rate and geographic region. The study has a 95 percent confidence level and a plus or minus 3 percent margin of error.
About Bankrate, Inc.
Bankrate, Inc. (NASDAQ:RATE) (“Bankrate”) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2006, Bankrate.com had nearly 53 million unique visitors. Bankrate provides financial applications and information to a network of more than 75 partners, including Yahoo! (NASDAQ:YHOO) , America Online (NYSE:TWX) , The Wall Street Journal (NYSE:DJ) and The New York Times (NYSE:NYT) . Bankrate’s information is also distributed through more than 400 national and state publications. In addition to Bankrate.com, Bankrate also owns and operates FastFind, an internet lead aggregator and Mortgage Market Information Services, Inc. and Interest.com, Inc., each of which publishes mortgage guides and financial rates and information.