Do you know what a mortgage is? Half of Americans don’t

This story version has been formatted as an on-air script for broadcast outlets. See the original research story here.

“MYTHBUSTING MORTGAGES”

HALF OF AMERICA HAS NO IDEA WHAT A MORTGAGE ACTUALLY IS, NEW RESEARCH SUGGESTS. 

THAT’S ACCORDING TO A RECENT SURVEY THAT ASKED 2,000 AMERICANS, 73% OF THEM HOMEOWNERS, TO TEST THEIR KNOWLEDGE OF BOTH THE HOUSING MARKET AND FINANCIAL LENDING INDUSTRY.

ONLY 49% SELECTED THE CORRECT DEFINITION OF “MORTGAGE” FROM A LIST OF OPTIONS, ALTHOUGH HOMEOWNERS GOT IT RIGHT AT A HIGHER RATE (54%) THAN RENTERS (40%).

CONDUCTED BY ONEPOLL ON BEHALF OF PRIMELENDING, THE SURVEY SUGGESTS THAT THE AVERAGE AMERICAN HOMEOWNER REMAINS CAUTIOUS ABOUT BORROWING MONEY FROM FINANCIAL INSTITUTIONS.

ONLY 42% OF HOMEOWNERS POLLED USED A MORTGAGE TO FINANCE THEIR HOME; 48% USED CASH, AND LESS THAN A TENTH (7%) INHERITED THEIR HOME FROM A FAMILY MEMBER.

MILLENNIAL HOMEOWNERS AGED 26-40 WERE FAR MORE LIKELY TO PURCHASE THEIR HOUSES OUTRIGHT OR WITH CASH (55%), WHILE BABY BOOMERS AGED 57-75 MORE COMMONLY PREFERRED TO TAKE OUT A MORTGAGE (37%). 

MOST POPULAR HOUSE STYLES

• Ranch - 21% 
• Cape Cod - 15% 
• Colonial - 9% 
• Craftsman - 7% 
• Bungalow - 5%        
• Contemporary - 4% 
• Tudor - 4% 
• Victorian - 3% 
• Modern Farmhouse - 3% 
• Split-Level - 3%