States Where Savvy Shoppers Are Scoring Savings

A new study by LendingTree examined how much borrowers in each state could save if they chose the lowest annual percentage rate (APR) offered instead of the highest when shopping for a mortgage.

In times, where the 30-year fixed-rate mortgage (FRM) still borders the 7% range, and the national median payment applied for by purchase applicants increasing to $2,256 in April, smart shoppers are looking to save whatever they can throughout the home buying process.

Based on average loan amounts and APR spreads for 30-year, fixed-rate mortgages, borrowers could save an average of $76,410 over the lifetime of their loans by shopping around for their mortgage (an average savings of $212 per month and $2,547 annually).

For the study, LendingTree analyzed data from approximately 34,000 users of its online loan marketplace who received two or more offers from mortgage lenders in 2024. LendingTree then determined how much borrowers in each of the nation’s 50 states could save if they chose the lowest APR offered instead of the highest.

Nationwide, the spread between the average highest and lowest APRs offered to borrowers who shopped around was 92 basis points, a spread that varies from as high as 146 basis points in Minnesota to as low as 58 in Alaska.

Ranking the nation’s top spots

Out of all the states in the U.S., the three states with most expensive home prices, California, New Jersey, and Hawaii, were where shoppers could save the most over the life of their loan. Borrowers in California could save $131,190, $127,125 in New Jersey, and $115,947 in Hawaii over the lifetime of their loans by shopping around.

The 10 states where borrowers could save the most by shopping around for a mortgage include:

California

  • Average lowest offered APR: 6.71%
  • Average highest offered APR: 7.70%
  • Spread between average lowest and average highest APR: 0.99 percentage points
  • Average requested mortgage amount: $541,763
  • Lifetime savings: $131,190

New Jersey

  • Average lowest offered APR: 6.65%
  • Average highest offered APR: 7.81%
  • Spread between average lowest and average highest APR: 1.16 percentage points
  • Average requested mortgage amount: $448,065
  • Lifetime savings: $127,125

Hawaii

  • Average lowest offered APR: 7.10%
  • Average highest offered APR: 7.88%
  • Spread between average lowest and average highest APR: 0.78 percentage points
  • Average requested mortgage amount: $607,092
  • Lifetime savings: $115,947

Washington

  • Average lowest offered APR: 6.78%
  • Average highest offered APR: 7.78%
  • Spread between average lowest and average highest APR: 1.00 percentage points
  • Average requested mortgage amount: $473,474
  • Lifetime savings: $115,026

Minnesota

  • Average lowest offered APR: 6.45%
  • Average highest offered APR: 7.91%
  • Spread between average lowest and average highest APR: 1.46 percentage points
  • Average requested mortgage amount: $292,431
  • Lifetime savings: $103,555

Oregon

  • Average lowest offered APR: 6.88%
  • Average highest offered APR: 7.89%
  • Spread between average lowest and average highest APR: 1.01 percentage points
  • Average requested mortgage amount: $400,999
  • Lifetime savings: $98,965

Maryland

  • Average lowest offered APR: 6.86%
  • Average highest offered APR: 7.81%
  • Spread between average lowest and average highest APR: 0.95 percentage points
  • Average requested mortgage amount: $422,719
  • Lifetime savings: $98,339

Arizona

  • Average lowest offered APR: 6.92%
  • Average highest offered APR: 7.91%
  • Spread between average lowest and average highest APR: 0.99 percentage points
  • Average requested mortgage amount: $384,763
  • Lifetime savings: $93,802

Massachusetts

  • Average lowest offered APR: 7.05%
  • Average highest offered APR: 7.87%
  • Spread between average lowest and average highest APR: 0.82 percentage points
  • Average requested mortgage amount: $459,402
  • Lifetime savings: $93,042

Georgia

  • Average lowest offered APR: 6.86%
  • Average highest offered APR: 7.88%
  • Spread between average lowest and average highest APR: 1.02 percentage points
  • Average requested mortgage amount: $356,120
  • Lifetime savings: $89,339

Borrowers in Nebraska and Wisconsin have reported the largest spreads between the lowest and highest average APRs. The spread is 138 basis points in Nebraska and 135 in Wisconsin.

Click here for more information on LendingTree’s analysis of smart home shoppers.

Share this post :

Facebook
Twitter
LinkedIn
Pinterest
Picture of Eric C. Peck

Eric C. Peck

Eric C. Peck has 25-plus years’ experience covering the mortgage industry, most recently serving as Editor-in-Chief for National Mortgage Professional Magazine. He graduated from the New York Institute of Technology, where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books, and has served as Copy Editor for Entrepreneur.com.
Latest News
Categories

Unleash the Power of Knowledge

Stay in the know with our suite of email blasts
Receive the latest news

Gain Access to Exclusive Mortgage Knowledge!

Stay at the forefront of industry developments! By subscribing to MortgagePoint, you’re aligning yourself with the latest insights, updates and exclusive promotions in the mortgage industry. As an industry professional, it’s critical to stay informed and up-to-date. Don’t miss out – subscribe now!