Borrowers Can Save $62,572 on 30-Year Mortgages by Shopping, Finds LendingTree
TREE•LendingTree’s analysis of 80,000 mortgage shoppers shows choosing the lowest rate can save $62,572 on a 30-year fixed mortgage—$174 monthly or $2,086 annually, with six-plus offers boosting savings to $81,735. Despite a 0.79 percentage-point spread, just 66% compared quotes and 54% negotiated, but 93% of negotiators lowered payments.
1. Analysis Scope and Savings
LendingTree analyzed data from over 80,000 users who received two or more offers on 30-year fixed-rate purchase loans and determined that selecting the lowest interest rate produces average lifetime savings of $62,572—equivalent to $174 per month or $2,086 annually.
2. Effect of Offer Volume
The average spread between the lowest and highest rates stood at 0.79 percentage points across all borrowers, widening to 0.98 points for those with six or more offers, which increases potential lifetime savings to $81,735.
3. Comparison and Negotiation Trends
Sixty-six percent of borrowers compared quotes from multiple lenders but only 54% negotiated terms. Among those who negotiated, 93% reduced monthly payments, 37% cut payments by at least $100 per month, and 34% lowered fees or closing costs by $2,000 or more.
