Survey: ARMs Popular With Web 1st-Timers

An increasing number of Internet homebuyers who often are entering the housing market for the first time prefer an adjustable-rate mortgage loan product, according to a Bankrate Consumer Focus survey.The survey found that people 25 to 34 years old who do not have children and are first-time homebuyers are 52% more likely than others to choose an ARM. From February to September 2004, one-third of all online applicants, 31.9%, received an ARM compared with 24.1% during the December 2003 to March 2004 survey period and the August to November 2003 period. The most recent BCF survey monitored 6,982 participating consumers who were looking for mortgage lenders. First-time buyers also are more inclined to approach institutions they are more familiar with, or have been personally referred to, Bankrate said. About 94.3% consider interest rates as the most important selection criteria. Bankrate, which is based in North Palm Beach, Fla., can be found online at http://www.bankrate.com.