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.
