Two-thirds of homeowners admittingly don't know the meaning of 'mortgage'

By Vanessa Mangru // SWNS

NEWS COPY w/ VIDEO + INFOGRAPHICS 

Seven in 10 Americans admitted that owning a home is one of the most difficult parts of being an adult, according to new research.

A survey of 2,000 homeowners found that 71% of them don’t fully understand the fine print of purchasing a home — but it’s not just the little things they’re unsure about.

What puzzles 64% of homeowners is financial jargon, such as terms like home equity, capital appreciation and mortgage.

More people turned to others for advice when making financial decisions about homeownership than trying to figure it out themselves (55% vs. 44%). Half of Americans contact their friends who also own homes (52%), and 45% seek their parents for homeownership guidance.

And three in four wish there was an all-in-one resource that had the answers to all of their financial questions about owning a home (76%).

Conducted by OnePoll and commissioned by Figure, the study also revealed that owning a home was a financial wake-up call for 63% of people who never thought it would be more costly than they imagined.

More than six in 10 respondents shared they’ve put off necessary repairs since purchasing their home because they don’t have the funds to support them (64%).

When the time comes for renovations, 57% of people will pay for the project through their savings.

With all of this in mind, seven in 10 homeowners said they would have reconsidered purchasing a home if they knew about all the unexpected costs that come with it.

To help financially support their homes, 61% said they are considering a cash-out refinance or home equity line of credit (HELOC) to make home improvements or consolidate debt, but 68% are unsure how.

People are determined to be in the know about their home, though, as 43% of longtime homeowners said they’ve secured a lower interest rate for their homes in 2020 and 2021.

Additionally, 71% agree that there was never a better time to purchase a home than the last couple of years.

Nearly one in 13 homeowners purchased their home during the pandemic, with 68% of those respondents securing a low-interest rate and 53% locking in a high home appreciation rate.

Most of those who purchased homes with low-interest rates during that time said they wouldn’t have been able to afford them if that wasn’t the case.

MOST CONFUSING FINANCIAL HOMEOWNER TERMS

1. Home equity
2. Capital appreciation
3. Mortgage
4. Escrow
5. FHA loan
6. Interest
7. Refinance
8. Principal
9. Fixtures [TIED]
10. Homeowner’s association (HOA) [TIED]