Consumers Shop for Everything Except Their Mortgage

Believe It Or Not!

According to a new LendingTree survey of 1,317 homeowners conducted online by Harris Interactive in September, 96 percent of American consumers compare prices when shopping for anything, but nearly 40 percent obtain just one home loan quote. By comparison, when shopping for a home computer, consumers research an average of 3.1 models before making a purchase. This explains why fewer than 3 in 10 (28 percent) borrowers are very confident they received the best possible deal on their current mortgage.

Based on a nationally representative sample of current homeowners who were involved in shopping for their home loan, the study revealed 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.

Frustration also appears to be at the root of this shopping dilemma. According to the survey, 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).

The survey also reveals:
• 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 10 spent the amount of time it takes to brush their teeth.
• Twenty-three percent of homeowners recognize they could save more than $100 a month by reducing their mortgage rate by one percent.
• Women are more than twice as likely as men to say they were not at all involved with shopping for their mortgage or when refinancing (16 percent versus seven percent, respectively).

Tax Credits, Energy Saving Rebates, Energy Mortgages ....Going, Going, Gone

Are you confused about all the federal and state programs?  Rebates? Tax credits? Appliances that qualify for Energy Star rebates?  Many credits and rebates for energy-efficient purchases are expiring at the end of this year. The Washington State Rebate funds for purchases of Energy Star appliances have been paid out already. A wait list is being compiled in case additional funds become available. 

The City Light Appliance rebate program for energy efficient lighting, clothes washers, ductless heat pumps and various forms of insulation can be seen here.  A host of valuable links and programs are also provided.  In addition Puget Sound Energy has its own menu of rebates on its site.  A variety of programs are offered in various counties in Washington State.  

Federal tax credits for solar-energy, small residential wind turbines and geothermal pump systems cover 30% of all costs with no upper limit. These are good on both primary homes and vacation homes, new construction or otherwise. And they don't expire until 2016. An overview of these credits together with a tax credit fact sheet can be found at this site. 

And if that is not enough, here comes the cherry on the cake. FHA's Energy Efficient Mortgage program (EEM) helps home buyers or owners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage.  Although there have been problems in some sates with conflicting regulations, it is certainly worth a try if you are considering any substantial upgrades. It is on the HUD website. 

Hope these links will be helpful to some of you. Pass them on anyone you know who may be able to use them.