Most American homebuyers lack knowledge of how mortgages work and one lender is hoping to use Super Bowl LII to change that
Most American homebuyers lack knowledge of how mortgages work and one lender is hoping to use Super Bowl LII to change that.
As the Patriots and the Eagles break for the Big Game’s half-time show, Ally Bank says the time is just right to learn mortgage fundamentals from its new Playbook.
The direct-to-consumer mortgage business of Ally Financial, the bank has surveyed more than 2,000 US adults and found that most don’t know how much house they can afford, and other topics including rates and closing costs.
Only 8% were aware that the maximum debt-to-income ratio is typically 43%; with most saying it was significantly lower or unable to make a guess. This was a real issue for millennials and baby boomers.
More than two thirds thought closing costs were higher than a typical 1-5% of home purchase price; or had no idea.
There was also confusion about whether buyers looking to stay in their home for a short-term should consider low points or low rates.
"When it comes to major financial investments, such as a home, it's critical consumers have a solid grasp of the basics," said Diane Morais, president, Consumer and Commercial Banking Products.
Homebuyers happy to miss Justin Timberlake’s performance and learn mortgage basics instead can download the free resource on Ally’s website.
As the Patriots and the Eagles break for the Big Game’s half-time show, Ally Bank says the time is just right to learn mortgage fundamentals from its new Playbook.
The direct-to-consumer mortgage business of Ally Financial, the bank has surveyed more than 2,000 US adults and found that most don’t know how much house they can afford, and other topics including rates and closing costs.
Only 8% were aware that the maximum debt-to-income ratio is typically 43%; with most saying it was significantly lower or unable to make a guess. This was a real issue for millennials and baby boomers.
More than two thirds thought closing costs were higher than a typical 1-5% of home purchase price; or had no idea.
There was also confusion about whether buyers looking to stay in their home for a short-term should consider low points or low rates.
"When it comes to major financial investments, such as a home, it's critical consumers have a solid grasp of the basics," said Diane Morais, president, Consumer and Commercial Banking Products.
Homebuyers happy to miss Justin Timberlake’s performance and learn mortgage basics instead can download the free resource on Ally’s website.
