1/3 Don't Know Their Rate
Ask any American how much money they make for a living, and they'll tell you down to the weekly penny. Ask what interest rate governs their single-largest monthly expense, and more than a third don't know.
"Your mortgage rate is one of the most important numbers in your financial life, and there's a good chance that one of your neighbors has no idea regarding how much he or she is paying," said Holden Lewis, a senior mortgage analyst at Bankrate.com.
Bankrate.com surveyed a national sample of 1,000 adults and found that 35 percent did not know their mortgage interest rate. One in 7 mortgage holders were either "not too confident," "not at all confident" or had no idea about their rate.
Lenders say the finding is not at all surprising. Home buying is stressful, and most borrowers are honed in on what their monthly payment will be, not how they get to that payment. What does this mean for home purchases? It means that setting up the borrower with the right loan and payment and making the process smooth and stress-free is more important than the interest rate to the borrower as part of the experience.