U.S. Homeowners Can (and Should) Learn More About Their Mortgages

		A survey conducted by Harris Interactive on behalf of Radian Guaranty Inc. (www.radian.biz), found that more than half of all U.S. homeowners said they were not at all or only somewhat knowledgeable about the mortgage options available to them at the time they purchased their homes. And homeowners said that the biggest piece of advice they would offer new homebuyers is to understand just how much of a home they can afford to purchase. (PRNewsFoto) PHILADELPHIA, PA USA

Top advice from homeowners to rookie home buyers: know how much house you can afford PHILADELPHIA, Nov. 21 /PRNewswire-FirstCall/ -- According to survey results released today by Radian Guaranty, more than half (52%) of all U.S. homeowners said they were not at all or only somewhat knowledgeable about the mortgage options available to them at the time they purchased their homes. Harris Interactive(R) conducted the survey on behalf of Radian Guaranty, a provider of mortgage insurance products and services and subsidiary of the global credit risk management company Radian Group Inc. (NYSE: RDN). (Photo: http://www.newscom.com/cgi-bin/prnh/20051121/PHM037 ) "These survey results suggest that lenders and others in the financial services arena have a real opportunity to help Americans by educating them about their personal finances, particularly the many mortgage options available to home buyers. A home is generally the largest purchase individual Americans will ever make, and they have a right to know how to find and negotiate the best deal they can make for themselves," said Mark Casale, Executive Vice President, Mortgage Insurance. According to the survey, two-thirds (66%) of Americans own their homes and nearly half (47%) have a home mortgage. Among all homeowners, only 48 percent said they were knowledgeable or very knowledgeable about the mortgage options available to them when they were purchasing their homes. Those claiming to be knowledgeable or very knowledgeable about mortgage options are most likely to be homeowners over the age of 55 (55%), divorced, widowed or separated (54%) and have at least a college education (51%). In general, similar proportions of women and men homeowners said they were knowledgeable or very knowledgeable (49% and 46%, respectively). Slightly larger proportions of homeowners in the Northeast (50%) and West (50%) consider themselves knowledgeable or very knowledgeable about mortgage options as compared to homeowners in the South (46%) and Midwest (45%). Half of homeowners (51%) who had secured a mortgage on their primary residence within the last two years felt knowledgeable or very knowledgeable about mortgage choices, while a substantial number of homeowners (59%) who secured a mortgage three or more years ago felt not at all or only somewhat knowledgeable. "In recent years, many more mortgage options and financing choices have been made available to home buyers. It makes sense that those who purchased or refinanced a home recently would feel more knowledgeable about their mortgage options than those who have not," said Casale. Advice to New Home Buyers When asked what advice they would give to a prospective home buyer about the process to obtain a mortgage, homeowners said first and foremost home buyers need to understand just how much of a home they can afford to purchase (55% mention this as the first or second piece of advice they would give), followed by researching and determining the best mortgage options available that would suit their needs (45%), and getting pre-approved for a mortgage before searching for a home (36%). "Homeowners in this survey have the right idea," said Casale. "Those who are entering the market for the first time or who are looking to move up, need to first determine what they need in a home and how much home they can afford. Certainly, having the foresight to get pre-approved will help prospective buyers focus on the right price range for their home-buying search." As one of the largest U.S. mortgage insurance providers, Radian continually monitors the national housing market to ensure that home buyers alike make the best, most-informed decisions possible. To that end, said Casale, Radian views the survey results as a call to action for the company to continue to foster a more educated homeowner community. "Researching mortgage options will help them determine how they can achieve their aspirations for a home that suits their needs, while managing their finances to ensure an affordable opportunity," said Casale. Methodology Harris Interactive(R) conducted the online study on behalf of Radian Guaranty between October 25 and 27, 2005, among a nationwide cross section of 2,003 U.S. adults aged 18 or older, of whom 1,310 own their current residence. Figures for age, sex, race, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online. In theory, with probability samples of this size, one can say with 95 percent certainty that the overall results have a sampling error of plus or minus 3 percentage points, while the homeowner results have a sampling error of plus or minus 4 percentage points. Sampling error for the various homeowner sub-samples is higher and varies. This online sample is not a probability sample. About Radian Group Inc. Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in both New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in active credit-based consumer asset businesses. Additional information may be found at http://www.radian.biz. About Harris Interactive(R) Harris Interactive Inc. (http://www.harrisinteractive.com), based in Rochester, New York, is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll(R) and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value. Harris Interactive serves clients worldwide through its United States, Europe (http://www.harrisinteractive.com/europe) and Asia offices, its wholly owned subsidiary Novatris in Paris, France (http://www.novatris.com), and through an independent global network of affiliate market research companies. EOE M/F/D/V