According to a new study from LendingTree, many people are losing out on big savings by not shopping around for the best mortgage offer.
The analysis found that borrowers who compare mortgage offers could save an average of $62,572 over the life of a 30-year, fixed-rate mortgage. Many people fail to do so.
Here are key findings from the study:
Borrowers could save an average of $62,572 over the life of a 30-year, fixed-rate mortgage by shopping around. LendinTree said that’s equivalent to $174 per month or $2,086 per year when choosing the best available offer. That’s down, however, from $80,024 in LendingTree’s early 2025 analysis, as rate spreads have narrowed and mortgage rates have declined.
More mortgage offers mean more opportunities to save, LendingTree said. The rate spread between borrowers receiving the lowest and highest average offered interest rates is 0.79 percentage points, it noted. But borrowers receiving six or more offers saw a spread of 0.98 percentage points, increasing potential monthly savings from $174 to $227.
Where Are The Biggest Savings?
LendingTree noted that borrowers in Hawaii ($89,621), New Jersey ($81,955), and California ($81,705) could benefit the most from comparing offers. Borrowers in New York ($32,909), West Virginia ($41,037), and Mississippi ($44,521) could see the lowest, but still significant, potential savings.
The analysis showed two-thirds (66%) of mortgage holders compared quotes from multiple lenders during their most recent home loan shopping process, but only 54% tried to negotiate. It said that baby boomers are the least likely to negotiate at just 18%, compared with about 70% of Gen Zers and millennials. Also, men are significantly more likely than women to negotiate (67% versus 36%).
According to LendingTree, most borrowers who negotiated focused on their interest rate (79%), and many negotiated closing costs or lender fees (62%).
Among those who negotiated their rate, 93% reduced their monthly payment, including 37% by $100 or more. Fee negotiators fared well, too, as 34% reduced upfront costs by at least $2,000 — including 12% who saved $5,000 or more.
The potential savings from comparing mortgage offers are substantial. Borrowers who receive the lowest available rate rather than the highest could save an average of $62,572 over a 30-year, fixed-rate mortgage — equivalent to $174 a month or $2,086 a year, LendingTree noted.
Know How to Shop
Matt Schulz, LendingTree Chief Consumer Finance Analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life,” said people leave those savings on the table for many reasons.
“Some don’t know that shopping around makes a difference,” he says. “Some don’t 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. There may be as many reasons as there are shoppers, but failing to shop around can be a big mistake. Life’s expensive enough today. The last thing any of us needs is to pay more than we should, especially with a mortgage,” Schulz said.
How much should borrowers shop around?
“Three should be the minimum you receive,” Schulz said. “That can help give you a good feel for what the market looks like. Sites like LendingTree make it easier than ever to potentially get far more quotes than that, which can lead to additional savings. However, you should aim to get at least three.”
