When it comes to financing a home purchase, buyers who don’t shop around may end up paying a lot more than they should.
New research from LendingTree, an online lending marketplace, found that borrowers who take the time to compare rates from a variety of lenders can possibly save an average of $62,572 over the life of a 30-year fixed-rate mortgage.
LendingTree estimated those savings based on the difference between the average lowest offered interest rate of 5.93% and the average highest offered interest rate of 6.72% for the period between Oct. 1, 2025, and April 26, 2026. The 0.79% difference in mortgage rates equates to $174 a month, or $2,086 a year, based on the average requested mortgage amount of $337,187. The research is based on LendingTree’s mortgage purchase request data collected on its platform.
While shopping around may sound like just common sense, Matt Schulz, LendingTree’s chief consumer finance analyst, said many borrowers don’t heed the age-old advice. There are many reasons for this, including the fact that consumers may not realize that getting multiple quotes can make a difference or they may not know how to shop around.
“Some are nervous about asking and fear that doing so might make things worse. Some trust their real estate agent or others to point them to the right lender and don’t want to take the time to compare,” Schulz said in a press release.
The potential savings, however, can be impressive. LendingTree found that for every $100,000 borrowed, homeowners who lock in the lowest rates instead of the highest available can save an estimated $18,557 over the life of a 30-year loan.
The research also showed that the more mortgage quotes consumers gather from lenders, the better the chances they have of finding lower rates. LendingTree found that consumers who sought two to three financing offers found lower rates that could potentially save an average of $41,490 over the course of the 30-year loan when compared to the average highest rates.
Buyers who sought four or five offers found lower rates that equated to a potential savings of $54,154. Those who shopped for six or more offers could potentially save $81,735, LendingTree found.
The savings also varies depending on where consumers are buying homes, primarily because property values are much higher in certain states. The more expensive the property, the more borrowers can save from reduced rates.
The highest savings were found in Hawaii, where borrowers who shop around could save as much as $89,621 over 30 years. New Jersey was second, offering potential savings of $81,955. In third place was California, with savings of $81,705.
The least, but still significant, savings were found in New York at $32,909. West Virginia ranked 49th, offering homebuyers potential savings of $41,037, followed by Mississippi, with possible savings of $44,521.
