Do You Know If You Have A Fixed-Rate Or Adjustable-Rate Mortgage?

Homeowners are smarter about their mortgages than in the past. Only 8 percent said they don’t know if they had a fixed-rate mortgage, an adjustable-rate mortgage or a more unusual type of loan, reported a poll commissioned by BankRate. If that sounds bad, consider that two years ago 26 percent of borrowers said they didn’t know what type of mortgage they had. In 2007 an incredible 34 percent said they didn’t know if they had a fixed-rate or an adjustable-rate mortgage.  Compare fixed mortgage here.

Homeowners also typically have no regrets about buying their home despite the increasing number of foreclosures and drop in housing values. Only 9 percent of homeowners in the poll said they regret buying their current home, compared to 90 percent who had no regrets.

Of those who had regrets, 31 percent said they felt unhappy because they could not sell their home, and 22 percent said they couldn’t afford their monthly mortgage payments. Others said they were unhappy because their home’s value had dropped, or they didn’t like their home’s location, or because of other reasons, according to the poll done by Princeton Survey Research Associates.

Blacks were far more likely to feel sorry about buying their home and were more likely to report difficulty meeting monthly mortgage payments. They were also slightly more likely to have an adjustable-rate mortgage or an option ARM.

Not surprisingly, fixed-rate mortgages have become more popular, the survey indicates. Almost 80 percent of homeowners said they have fixed-rate mortgages, compared to about 65 percent in 2008. Wealthy homeowners were more likely to have fixed-rate mortgages. Roughly 85 percent of households with income of more than $75,000 opted for a fixed-rate, compared to 70 percent of households with income under $30,000.

A survey by Fannie Mae earlier this year agreed that people generally see homeownership as a good choice. The Fannie Mae survey found that about two-thirds of Americans want to own a home, despite the economic slowdown and decline in home prices. Safety and quality schools were top reasons for wanting to buy a home.

“Despite the recent downturn in the housing sector, Americans continue to value homeownership and think about their homes in ways that go much deeper than the financial investment,” said Mike Williams, president and CEO, Fannie Mae.

The public is more cautious, however. For instance, almost a quarter of renters said were postponing buying a home despite low mortgage rates.