20120925 Home Buying Survey FINAL by XM46j3gN


									                                                              Press Contacts:
                                                              Amber Danford, Texas Trust Credit Union

                                                              Kristine Tanzillo, Dux Public Relations

                    North Texas Renters Show Surprising Interest
                    in Buying a Home, Texas Trust Survey Reveals

MANSFIELD, Texas – September 25, 2012 - Only one in eight North Texas homeowners is
interested in selling their house and buying another right now, an extensive survey by Texas
Trust Credit Union shows. But there is high interest in home buying among people who are
currently renting apartments or houses.

Texas Trust, one of the largest credit unions and residential mortgage lenders in North Texas,
conducted its first online survey of homeowners and renters in mid-August to gauge attitudes
about home ownership.

While the survey reflects a slowly recovering housing market in the region, it also spotlights a
more pragmatic and less idealized vision of home ownership.

                      For example, 83 percent of non-homeowners surveyed say they are
                      interested in buying a house, either this year or within the next five years.
                      Of those, three out of four indicate their main motivations are financial,
                      not emotional: 34 percent see home ownership as a better investment than
                      renting, and 28 percent see it as an investment in their family’s financial
                      future. Seven percent want to build equity and another 7 percent are
                      motivated by the home interest tax deduction. Only 22 percent are
                      motivated by the "emotional" attractions of the personal pride of home
                      ownership or having something to pass along to their children when they

Among the current homeowners surveyed who are interested in buying another house at this
time, financial motivations also dominated. Among this group, 50 percent are attracted by
current low interest rates, while 18 percent relish the idea of getting a bigger house for less
money and 16 percent simply see another house as a good investment at this time.

"What motivated most people to buy houses in the past isn't necessarily the same as what
motivates them today," said Richard Whitman, Vice President of Mortgage Lending at Texas
Trust Credit Union. "According to our survey, Dallas-Fort Worth area residents no longer see
home ownership as the American dream. Instead, they're coming to see it more as a financial
investment designed to grow their net worth."

In light of political discussions about the elimination of the home loan interest tax deduction as
part of an overall streamlining of the U.S. tax code, the survey asked homeowners about the
importance of that deduction to them. For 65 percent of them, elimination of the deduction
wouldn’t diminish their interest in home ownership. But 8 percent said they wouldn’t be
interested in owning a home without the deduction, and 27 percent were uncertain.

Interestingly, both renters and homeowners expressed a strong desire for a personal relationship
with the financial institution holding their mortgage. That desire was particularly important to
renters, with 88 percent of them considering the relationship very important or at least somewhat
important. Overall, across all groups, this relationship was very important or somewhat
important to 82 percent of all respondents.

"When you consider that home ownership is viewed as a financial investment, it is no surprise
that consumers view the relationship with their mortgage holder as highly important," said

Unlike many large lenders, at Texas Trust, we have a vested interest in keeping mortgage loans
in-house and servicing members for life, Whitman added.

Among other noteworthy findings in the survey:
   Of the renters interested in buying a home, 77 percent define an "affordable" down
     payment as five percent or less of the price of the home; among current homeowners,
     only 48 percent define affordable that way, with 26 percent of respondents happy with 10
     percent down, and 23 percent of them agreeable to a 20 percent or higher down payment.
   60 percent of renters interested in buying a home say they would prefer to buy an existing
     home; 40 percent prefer a new or custom-built home.
   31 percent of all current homeowners are considering refinancing (41 percent for those
     interested in another house and 28 percent for those not currently interested in moving).
     24 percent have refinanced within the last two years, and 19 percent say their mortgage is
     paid off.
                   74 percent of all current homeowners say they are not under water on
                     their home, that they do have equity. Only 9 percent say they don’t have
                     equity, and 17 percent are unsure.
                   84 percent of homeowners say they have never missed a mortgage
                     payment; 13 percent admit to missing five payments or less during the
                     life of their mortgage.
                   Only one in four renters interested in buying a home – 24 percent –
                     expressed confidence in their ability to get a home loan. More than 50
                     percent said obtaining a loan would be challenging or difficult, and the
                     others weren’t sure.

A total of 1,719 respondents took part in the survey, about 86 percent of whom are members of
Texas Trust.

Supporting graphics for the Texas Trust Home Buyer Survey are available online.

About Texas Trust Credit Union
Texas Trust is one of the largest credit unions in North Texas and the 21st largest in Texas. It has been
operating for more than 75 years. As a full-service financial institution, Texas Trust offers checking, savings,
mortgages, credit cards, CDs, Money Market accounts, IRAs, and investment and insurance services. Its
business services include SBA and conventional loans, electronic payment cards, checking and money market
accounts, merchant card processing, online banking, insurance, and the Employee Solutions Network. With
58,000 members and assets of more than $721 million, Texas Trust operates in Dallas, Tarrant, and
                                                                  Press Contacts:
                                                                  Amber Danford, Texas Trust Credit Union

                                                                  Kristine Tanzillo, Dux Public Relations
Henderson counties, as well as parts of Ellis and Johnson counties. Texas Trust has eight branches located
in Mansfield, Grand Prairie, Arlington, Cedar Hill, and Athens. For more information, visit
www.TexasTrustCU.org. Texas Trust is a federally insured financial institution. Deposits up to $250,000
are insured by the full faith of the federal government through the National Credit Union Administration

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