Mortgage Survey
Edited by Harry Jensen
At FREEandCLEAR our goal is to empower borrowers to make better decisions and save money when they get a mortgage. In pursuit of that goal we realize we need to develop a deep understanding of how borrowers think about, experience and understand the mortgage process. More than eight years removed from the mortgage crisis we decided the time is right to conduct an in-depth survey to inform our knowledge of mortgage borrowers and dive into key mortgage topics.
We set out to assess how borrowers think about mortgages, lenders and ultimately attempt to determine what, if anything, borrowers have learned about the mortgage process since the meltdown. What challenges and frustrations do borrowers face when the get a mortgage? Do borrowers trust lenders in light of their not always sterling reputation? How are borrowers educated about the mortgage process? Are today's borrowers more knowledgeable than in the past? What should be done to improve the mortgage process? These are just a handful of the questions the FREEandCLEAR Mortgage Survey explores.
The survey is organized into five major themes: 1) Mortgage Experience and Challenges, 2) Lender Trust and Satisfaction, 3) Mortgage Lender Selection, 4) Mortgage Borrower Education and Knowledge; and, 6) How to Improve the Mortgage Process. Because each theme is important and stands on its own, we have decided to reveal the results of the FREEandCLEAR Mortgage Survey in stages. We think you will find the results both enlightening and entertaining -- we want to inform you and hopefully have a laugh along the way.
We encourage you to review and share the results of our survey with your colleagues and friends. We also invite you to contact us with any questions, inputs or ideas on how we can improve future surveys (this is only the beginning!). We believe that the more borrowers understand the mortgage process and the more people understand borrowers, the better the results for everyone, which is the ultimate goal of our survey and FREEandCLEAR.
Mortgage Borrower Education and Knowledge
Were You Taught Anything About How Mortgages Work in High School?
- a. Yes
- b. No
Were You Taught Anything About How Mortgages Work in College?
- a. Yes
- b. No
From What Source Have You Learned the Most About the Mortgage Process?
- a. Lender
- b. Realtor / Agent
- c. School
- d. Internet Resources
- e. Consumer Finance Protection Bureau (CFPB)
- f. Other
On a Scale Of 1-10, with 10 Being the Most Knowledgeable, How Knowledgeable Are You About Mortgages?
- a. Response selected from scale of 1 - 10
Is It Possible to Buy a Home with a Down Payment of Less Than 5%?
- a. Yes
- b. No
The Monthly Payment for What Type of Mortgage Can Change Over the Course of the Loan (select all that apply)?
- a. Fixed Rate Mortgage
- b. Adjustable Rate Mortgage
- c. Interest Only Mortgage
How Much of Your Monthly Gross Income Should You Spend on Your Housing Expense Plus Debt Payments?
- a. 34%
- b. 43%
- c. 51%
- d. 62%
- e. Do Not Know
With What Length of Mortgage Do You Pay The Least Amount of Interest over the Life of the Mortgage?
- a. 30 Year Mortgage
- b. 20 Year Mortgage
- c. 15 Year Mortgage
- d. 10 Year Mortgage
- e. Do Not Know
Who is Fannie Mae?
- a. Alexander Hamilton's Wife
- b. George Washington's Wife
- c. First Female US Senator
- d. First Female US Soldier
- e. None of the Above
Mortgage Lender Selection
How Many Lenders Did You Compare When You Got Your Mortgage?
- a. 1
- b. 2
- c. 3
- d. 4
- e. More Than Four
How Did You Find the Lender You Selected for Your Mortgage?
- a. Existing Bank Relationship
- b. Real Estate Agent Referral
- c. Friend or Colleague
- d. Internet Search
- e. Other
What Types of Lenders Did You Contact When You Got Your Mortgage (select all that apply)?
- a. Big Bank (examples: Bank of America, Chase, Citibank, Wells Fargo)
- b. Local Bank
- c. Mortgage Broker
- d. Credit Union
- e. Mortgage Bank (example: Quicken Loans)
What Was the Most Important Factor When You Selected a Mortgage Lender?
- a. Lowest Interest Rate
- b. Lowest APR
- c. Lowest Monthly Payment
- d. Recommendation
- e. Best Customer Service
- f. Lowest Closing Costs
- g. Other
Do You Feel Like You Got a Good Deal on Your Mortgage?
- a. Yes
- b. No
How Did Your Interest Rate Change From When You Selected Your Lender Until When Your Mortgage Closed?
- a. My Rate Increased
- b. My Rate Decreased
- c. My Rate Stayed the Same
How Did Your Closing Costs Change From When You Selected Your Lender Until When Your Mortgage Closed?
- a. My Closing Costs Increased
- b. My Closing Costs Decreased
- c. My Closing Costs Stayed the Same
Mortgage Experience and Challenges
My Mortgage Experience Was Most Similar to:
- a. Annual physical
- b. Day at the spa
- c. Going to the dentist
- d. A nice meal
- e. Doing business with a good friend
What Was the Most Challenging Part of the Mortgage Process?
- a. Paperwork
- b. Mortgage terminology
- c. Qualification requirements
- d. Understanding my mortgage rate and closing costs
- e. How my mortgage program works
- f. Other
On a Scale of 1-10, with 10 Being the Most Challenging, How Challenging was the Mortgage Process?
- a. Response selected from scale of 1 - 10
Mortgage Lender Trust and Satisfaction
On a Scale of 1 to 10, with 10 Being the Highest Level of Trust, How Much Do You Trust Your Mortgage Lender?
- a. Response selected from scale of 1 - 10
On a Scale of 1-10, with 10 Being the Most Knowledgeable, How Knowledgeable Was Your Mortgage Lender About the Mortgage Process?
- a. Response selected from scale of 1 - 10
On a Scale of 1 to 10, with 10 being the Most Satisfied, How Satisfied are You with Your Mortgage Lender?
- a. Response selected from scale of 1 - 10
About the FREEandCLEAR Mortgage Survey
The FREEandCLEAR Mortgage Survey used a nationwide, random panel of 22 - 49 year old respondents that currently have a mortgage. The survey was conducted using a third party survey creation, panel and response collection platform. To ensure statistical accuracy, the minimum number of responses per question was 421. Please contact FREEandCLEAR for more information about survey methodology.
%
Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes, insurance premiums or private mortgage insurance if applicable. Actual payments will be greater with taxes and insurance included. Read through our lender table disclaimer for more information on rates and product details.