1 in 3 Homebuyers Leave $62K on the Table by Not Comparing Mortgage Offers
Buying a home is one of the biggest financial decisions many Americans will ever make. Still, too many buyers leave tens of thousands of dollars on the table by skipping one simple step: shopping around.
We analyzed data from more than 80,000 users of LendingTree’s online loan marketplace. We found that mortgage shoppers could save an average of $62,572 over the life of a 30-year fixed mortgage — equal to $174 a month or $2,086 a year — by choosing the best available offer. Here’s what else we found.
- More offers = bigger savings: borrowers saw a 0.79-point rate spread between the lowest and highest average offers, but those receiving six or more offers saw a 0.98-point spread, increasing potential savings from $174 to $227 a month.
- Borrowers in Hawaii ($89,621), New Jersey ($81,955) and California ($81,705) could benefit the most from comparing offers. Meanwhile, borrowers in New York ($32,909), West Virginia ($41,037) and Mississippi ($44,521) could see the lowest — but still significant — potential savings.
- 66% of borrowers compared quotes from multiple lenders during their latest mortgage search, but only 54% negotiated. Just 18% of baby boomers negotiated, versus about 70% of Gen Zers and millennials, while men were nearly twice as likely as women to negotiate (67% vs. 36%).
- 93% of borrowers who negotiated their rate lowered their monthly payment, including 37% who saved $100+ a month. Meanwhile, 34% of fee negotiators cut upfront costs by $2,000+, including 12% who saved $5,000+.
You can check out the full report here: https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/
LendingTree’s Chief Consumer Finance Analyst, Matt Schulz, had this to say:
“Shopping for a mortgage can feel intimidating, especially when rates are still relatively high, but this study shows how valuable it can be. Even a small difference in interest rate can add up to tens of thousands of dollars over the life of a loan. That’s money people could instead put toward retirement, emergencies or simply making their monthly budget a little less stressful.”
