Americans may be spending more time shopping for shoes than for a mortgage, a report from the Consumer Financial Protection Bureau suggests. Almost half of consumers seeking a loan to purchase a home do not shop lenders, the agency said Tuesday.
A consumer taking out a 30-year mortgage for $200,000 and paying an interest rate of 4.5 percent will pay about $60 per month more than someone borrowing at 4 percent, and the borrower with the cheaper loan will also build equity faster, the report said.
"Consumers put great thought into the choice of a home, but the mortgage process continues to be intimidating," said CFPB Director Richard Cordray, who is announcing a "know before you owe" information initiative designed to help consumers navigate the still-complex mortgage market. "Consumers will be able to gain greater control over the outcomes of the mortgage process and maximize the benefits of this major transaction," Cordray said in prepared remarks for delivery at the Brookings Institution.