More than 50 percent of Americans expect that most home mortgages will originate over the Internet in the next five years, according to this year's Fannie Mae National Housing Survey.
While noting concerns over Internet security from respondents, the survey found that people are gaining confidence in use of the Internet to purchase a home.
The survey revealed that prospective homebuyers use the Internet as an "easier way to compare and apply for various mortgages, and as a way to reduce racial discrimination in borrowing."
However, the survey found that the Internet is used more for gathering mortgage and real estate information than for completing online transactions. One-third of respondents considered the Internet useful for submitting loan applications.
And only 22 percent viewed the Internet as very useful for getting final approval on a mortgage.
Fannie Mae has conducted the survey of American attitudes toward housing and homeownership since 1992. A total of 1,674 people - 590 homeowners and 450 renters - were surveyed in July.
Other survey findings:
Only 4 percent of recent purchasers applied for a mortgage online, and 2 percent completed the entire process online.
50 percent said down payment and closing costs are not a major obstacle, up from 27 percent in 1992.
81 percent preferred a traditional bank with an online service vs. an Internet company that specializes in online financial transactions.
