Study: People Don’t Understand Mortgage Basics

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

A survey by Zillow reveals that many potential and actual homebuyers have misconceptions about everything from interest rates to refinancing.

More than a third of potential first-time homebuyers don’t understand fundamental things about mortgages that could save them thousands of dollars, a new Zillow survey says.

A nationally representative sample of more than 1,000 Americans was surveyed. Among the findings:

  • More than a third of first-time homebuyers don’t know what “annual percentage rate” (APR) means.
  • More than a third of first-time buyers don’t know that it’s possible to get mortgage approval with a down payment of less than 5 percent.
  • More than a third of all homebuyers incorrectly believe all lenders are legally required to charge the same fees for credit reports and appraisals.
  • More than a third of homeowners incorrectly believe you can refinance only once within a 12-month period. 

Also, 31 percent of homeowners believe a short sale or foreclosure will prevent them from purchasing another home for seven years. They actually might be able to buy in two or three years, although the wait after a foreclosure is usually longer than for a short sale.

One in five homeowners don’t think that underwater borrowers — those who owe more on their mortgage than their house is worth — have any chance of refinancing. However, more than 2 million have through the federal Home Affordable Refinance Program.

Zillow has a quick true-or-false mortgage quiz that can test and instruct you on all of the above. Knowing this stuff could save both owners and buyers thousands of dollars, so it’s worth a few minutes to learn.

Want to know more? Check out a few of our stories on mortgages below.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Ask Stacy: What’s the Best Way to Borrow?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 2,066 more deals!