APR, closing costs, and other homebuying terminology roll off your tongue naturally, but clients may not be as familiar with such jargon as you think.
In a MoneyWise homebuying financial literacy survey (https://moneywise.com/mortgages/american-homebuying-survey), over 56% of Americans flunked a quiz about common words like “mortgage rate” and “down payment.”
The quiz gave grades A through F for each generation’s ability to accurately define several homebuying terms. Though Baby Boomers did best compared to other generations, only 26.2% in the age group aced the quiz, and 33.5% flunked.
Given such results, it may be worthwhile to understand how familiar clients are with the real estate terms you’re using and be prepared to explain what you mean through conversations or handouts.
