Even with all the horror stories about consumer mistakes that contributed to the housing bust, many home buyers still haven't done the proper research on mortgages, according to Zillow.com.
In a survey of 1,005 prospective buyers nationwide, respondents answered basic questions wrong nearly half the time.
Adjustable-rate mortgages stumped almost six in 10 potential home buyers, while one-third didn't know fees vary by lender.
“Most people wouldn’t jump out of a plane if they didn’t know how to use a parachute, yet each year many buyers commit to the largest loan they will take out in their lifetimes without understanding essential information about mortgages,” Erin Lantz, director of Zillow’s Mortgage Marketplace, said in a statement.
Zillow, with market research company Ipsos, conducted the survey April 13-15.
• 55 percent didn't know that mortgage rates vary throughout the day.
• 45 percent believe they should always buy discount points when obtaining a mortgage. Actually, the decision should hinge on how long you intend to own the home.