A Third of U.S. Homebuyers Use Creative Mortgages, Poll Finds
THE WALL STREET JOURNAL ONLINE
September 9, 2005
Nearly one in five U.S. homeowners bought a home within the past three years that exceeded their suggested price range, a new Wall Street Journal Online/Harris Interactive personal-finance poll found.
Homeowners in the South and West are more likely than those in the Northeast or Midwest to report buying over their price range, according to the online survey of 2,300 U.S. adults.
At the same time, one-third of Americans who have purchased a new home in the past three years say they are using creative mortgage options such as interest only, piggyback, payment option, or miss-a-payment mortgages. And homeowners in the West are twice as likely as those in the Northeast, Midwest or South to opt for an interest-only loan, according to the poll.
"Non-traditional methods of funding a primary residence are becoming more commonplace and acceptable, especially in areas of the country that have seen housing prices skyrocket," says Anne Aldrich, senior vice president at Harris Interactive.
"But it is important that consumers be aware of all of the options available to them, as well as the possible risks that they may take on with 'creative' mortgage options," she adds.
Nearly four out of 10 (39%) of Americans who had purchased a home in the past three years used a mortgage broker, while 32% obtained their mortgage through a direct lender. Homeowners ages 18–34 (55%) are much more likely than older homebuyers to use a broker, the poll shows.
--Beckey Bright
See full results of the poll:
online.wsj.com |
