“True, speaking in general terms, it’s probably safe to say that women usually enjoy shopping more than men. But that doesn’t seem to be the case when it comes to their mortgages, and it could be costing them a bundle throughout the term of their mortgage. The information comes from a new study published by the Journal of Real Estate Finance and Economics; and it finds that women are 32% more likely to pay for their mortgage than men. And they might have their own trusting nature to blame for it.
The study finds that the reason why women are so much more likely to pay more is because they simply don’t shop around for mortgages the same way men do. While men are more likely to shop around at different lenders and get the best rates for themselves, women aren’t as inclined to do so. Instead, women are more likely to ask around to their friends and family, finding out who those closest to them use and simply opting for that lender because of it.
Another reason, the study shows, why women are likely to pay more is because women can be more easily persuaded with the “nice” and likability factor. If one lender is town has rock-bottom rates but are a pill to deal with, a woman is more likely to use another, more personable lender, even if their rate is a little higher. Men on the other hand, don’t seem to take those issues into consideration when choosing their mortgages.
And it’s not just first mortgages either, but second mortgages such as home equity loans too. The study also showed that women were much more likely to stay with their current lender when applying for a home equity loan, rather than shopping around to find someone that might be able to give them a better rate. The reason for this though, isn’t because women simply can’t be bothered to do a little comparison shopping but rather, just because women prefer to stay loyal to one company – especially if they haven’t had many issues or concern with that company.
What can women do? Not much, except for maybe start shopping around for mortgages a little more. But, given that women are more likely to choose based on personal experience and likability, they may still be getting the better end of the deal – even if they are paying a little bit more. “
