A recent poll commissioned by Discover Home Loans showed a large percentage of prospective homebuyers see a home purchase as a good investment, but many have not calculated the potential monthly costs.
According to the survey, while 87 percent of people know what kind of property they can afford, just over half—52 percent—of prospective homebuyers have actually determined their projected monthly payment. The other 48 percent did not know how the cost of their mortgage payment would change with a more or less expensive property.
Many of the respondents cited an overwhelming amount of information about the home financing process. Approximately two-thirds, especially those under the age of 30, reported feeling overwhelmed by the amount of information currently available. The figures were lower for previous homeowners than for first-time buyers.
Cameron Findlay, the chief economist at Discover Home Loans, said, however, that the industry is working to be more transparent to help inform homebuyers about information that could affect their financing.
“The sheer amount of information can lead to confusion and stress,” Findlay said. “Those looking to purchase should work closely with their lender and realtor to make sure they are comfortable with mortgage terms and understand the impact a loan will have on their finances.”