TYSONS, Va. — Americans are determined to own their dream homes — whether they buy or renovate — and despite current housing market trends, according to the PenFed Credit Union National Mortgage Survey released Tuesday.
The survey indicates that 37 percent of adults and 52 percent of millennials are looking to purchase a home in the next two years. Nearly all current homeowners (95 percent) like their home, but the majority (54 percent) would also like to renovate them. Additionally, the survey suggests that nearly half (48 percent) of those who do not currently own a home will be house-hunters over the next couple of years.
The market research firm McLaughlin & Associates conducted the survey on behalf of PenFed, the nation’s second-largest federal credit union.
‘‘Americans are undeterred when it comes to owning their dream home, and we are finding that for many that means renovating their current homes,’’ said Craig Chapman, vice president of mortgage sales and business development at PenFed.
According to the survey, two-thirds (65 percent) of owners didn’t shop around for a mortgage, despite a home most likely being the biggest purchase they will ever make. The results also identified common misconceptions around mortgages including:
A majority (44 percent) believes the best mortgage is the one with the lowest rate. Consumers should consider additional factors, including the total closing costs and the annual percentage rate. It’s also important to choose a company you trust and consider one that you already have accounts with because it can simplify payments. The majority (58 percent) thinks adjustable rate mortgages are for risk takers. An adjustable rate mortgage may be ideal for those staying in their home less than five years. About half (48 percent) say being prequalified is not the same thing as being preapproved. Being prequalified may give you an idea of what you can afford, but it doesn’t mean you are guaranteed a loan. Being preapproved entails a more comprehensive process and makes you a more qualified buyer.
Additionally, the survey indicates that most Americans would choose to build their dream homes in a relaxing location. The top-tier locations to build a dream home are on the beach (30 percent), a ranch/farm (22 percent), in their favorite city (22 percent), and in the mountains (18 percent). The bottom-tier choices are on a golf course (3 percent), in outer space (3 percent), and under the sea/ocean (2 percent).
Despite the recent news of HGTV’s recent purchase of the “Brady Bunch” home for a cool $3.5 million, half of adults would either want to live in the “Fresh Prince of Bel-Air” house (26 percent) or the home in “Full House” (24 percent). Southfork Ranch in “Dallas” ranked No. 3 (19 percent), followed by the “Brady Bunch” house (13 percent), “Little House on the Prairie,” (9 percent) and the “Addams Family” (9 percent).