LendingTree Blog

Categories: Market Trends

LendingTree
December, 14, 2010 | 17Comments

refinance-mortgage-infographic

Survey Data provided by Harris Interactive.

Consumers comparison shopping for many things – but not their mortgage. [infographic]

Consumers may like to find the best deals out there, but they don’t always approach their mortgages with the same zeal. In fact, people are more diligent about shopping around for a home computer than for a home loan quote, according to a new LendingTree survey conducted online by Harris Interactive. The survey, released today, found that consumers research an average of 3.1 computer models, compared to an average of 2.4 loan quotes. Amazingly, 39 percent of those who said they were at least “somewhat involved” with shopping for their mortgage said they received only one loan quote. Other interesting facts: 10 percent of people said they spent the same amount of time mortgage shopping as brushing their teeth, and 11 percent likened mortgage shopping to the amount of time it takes to walk a dog. To learn more, you can read a summary of the report on how consumers comparison shop for everything except their mortgage.

This report was conducted by Harris Interactive commissioned by LendingTree. Within 5 minutes you can receive up to 4 customized loans offers and compare rates online.

  • v

    This is obvious … to shop for a computer online, I just go to different websites and get quotes for free without providing ridiculous amount of personal details. There are some online mortgage companies that give you a quote with little information and then add a fine print that says this is for information only – exact rate will be determined after examining borrower eligibility – which actually means the quoted rate is BS. In my opinion comparing mortgage shopping with computer shopping is like comparing apples to oranges.

  • Dan

    There is a simple reason to this – when trying to comparison shop mortgages, the lenders ask for personal information which consumers are unwilling to share. Why not provide the information without asking for personal information ….. and provide consumers a range of interest rates instead?

  • Jonathan Asch

    Car shopping is my favorite type of comparison shopping. Between trips to dealers, internet sales guys, Costco car buying and all of the others, there’s nothing I enjoy more! That being said, my last purchase ended up being a loss leader deal that was advertised in the local paper. I could have saved myself 2 weeks worth of running around if I had just spent 25 cents for the Friday paper.

  • Anna Cearley

    @Dan If everybody’s financial situation were the same, that might be easier. But each case is unique and if people don’t provide enough information they can’t get an accurate quote/s. Less information = quotes that miss the mark. Considering the large financial investment in buying a house, comparison shopping (and i’ll slip in a little plug here: LendingTree helps with that) would be a smart way for people to find the best deal.

    @Jonathan Thanks for your comment! Share this post with your friends and let’s see if we can get more comparison shopping stories.

    -Anna Cearley, social media director with Tree.com/LendingTree

  • http://www.somedayilllearn.com Chelsea

    Getting others’ opinions is a really important part of comparison shopping (which is why so many comparison shopping engines now include user reviews). I’ve had the best luck finding good restaurant deals by asking around on Facebook and Twitter. Word of mouth is a great way to compare!

  • http://www.thebobbypin.com Natalie

    Hooray for the Internet. Most recently I found a fabulous pair of shoes at a local boutique. I googled the item number and found them cheaper at Amazon. I ordered them and walked out of the store with a purchase made, just not at the boutique!

  • Anna Cearley

    @Chelsea and @Natalie Online seems to be the way to go! Love your examples. Thanks for participating :-)

  • Pingback: Comparison shopping tips from around the web | The LendingTree Mortgage and Finance Blog

  • David D

    Well i def have a lot to say hehe.
    (Comparison shopping story) It all starts if u know what you are looking for vs browsing around. Just for example when I was looking for a camera I looked for great review sites like cnet for example. After I had an idea I went to price comparison sites. After i found the lowest price i went to bargain hunting/coupon sites for promo codes. After that I went to a cashback site to get some $ back and lower the cost and shopped with the credit card getting the highest benefit (pts vs cashback). Now I am currently unemployed for the moment and I had time to do this plus I have to pinch my pennies because it is tough and it is time consuming. I was happy that I did save a ton however if I was working I prob would have spent the time I did because it’s better spent doing something else.
    (On mortgage comparison) Now I did try to go shopping for a house last year before the market got worse and while I was working. BTW I worked at a bank at the time (4 years) & I did know quite a bit when looking for interest rates. But looking for a house that you have to settle in is quite a huge task in itself (what do look for? easier said than done & btw u have to watch out for nasty real estate agents who see u as $ signs – not all are like that but the 1 I met with was). During my job @ the bank I had to get apps for mtgs I always surveyed my clients. Some said they just went with their primary bank or contacted someone they knew that owned a house or knew more about finances than they did. Boy it was frustrating for some because of many things – 1 because of how long it took them to find the house & then after that was if they could afford it. People are scared to find out if there credit is any good? the unknown or sometimes there are things in the past they don’t want to know or resurface. Then comes the fact that some don’t really understand mtg rate terms. They also hear how long it takes for the app and the offer that they don’t want to pull their credit too many times. There are also many more people involved in the home-buying process and it’s the biggest financial decision a person can make. It’s an emotional decision as well as logical so I agree it’s tough to compare this to shopping a computer or camera. It really is apples to oranges but it’s hard for people to separate it to several parts and find it overwhelming.
    I hoped this helped.

  • Luis Del Rio

    I one time went shopping for a flash drive. Online on several websites I found the Xporter XT flash drive 16gb going for pricces above $40. I looked and looked several times. Then I found on New Egg for $32.99 with a $10 mail-in-rebate. I instantly purchased it. I always buy my electronics online and always compare different websites because what may be very pricey on one website may be at a decent price at another and vice versa.

  • Anna Cearley

    Thanks for your story, David. Maybe you should look around for a book publisher ;-) Sounds like you are a very savvy shopper. We encourage people to get to know their credit long before they apply for a home – that way they can fix any errors or improve their score to ensure they get the best interest rates. It’s also a good idea to get familiar with the loan process ahead of time so that it’s easier to compare loan offers. Knowledge is power!

  • Anna Cearley

    Awesome story!

  • Pingback: Personal Finance Bloggers Share Their Comparison Shopping Ideas | The LendingTree Mortgage and Finance Blog

  • http://www.mortgagedreams.com Keith

    That’s really interesting! I have been in the mortgage business for 12 years and I would think people do shop around based on what I’ve seen.

    That graphic above has some very interesting and valuable facts about mortgage shoppers! Thanks for posting!

  • Luis

    Hey, sorry to be a bother but i never received my $10 gift card. =(

  • Anna Cearley

    Luis: Not a bother at all! Thanks for letting us know! – Will double check on that.
    - Anna

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