This home purchase error can cost you $ 63,000

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It’s bad enough that home customers find prices record high, but there’s no reason to exacerbate the $ 63,000 error.

The simple act of shopping around for a mortgage can save homebuyers a lot of money over a 30-year fixed-rate home loan, according to a recent analysis from LendingTree.

The company examined data from more than 50,000 LendingTree users who received at least three offers from mortgage lenders in May 2022. LendingTree compared the offered mortgage with the lowest APR with the mortgage offered with the highest APR.

On average, borrowers who chose the home loan with the lowest APR in the country’s 50 largest metro areas saved an average of $ 63,151 over the life of their loan. That’s a saving of about $ 175 a month, or $ 2,100 a year.

The following are the best markets where borrowers can save the most money during the life of their loan just by taking the time to shop around.

1. San Jose, California

San Jose houses
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Average life savings among the borrowers of this metro who shopped around: $ 125,645 (for a 30-year fixed-rate mortgage)

California homes are notoriously expensive, so every penny you save here really counts. When you realize that you can save more than $ 125,000 just by taking the time to shop a little, it seems directly irresponsible not to compare prices.

2. San Francisco

San Francisco neighborhood.
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Average life savings among the borrowers of this metro who shopped around: $ 106,024 (for a 30-year fixed-rate mortgage)

The City by the Bay ranks No. 2 among the “15 cities with the most luxury homes.” When you pay for expensive homes like this, even the smallest reductions in your mortgage rate can yield big dividends.

3. Los Angeles

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Average life savings among the borrowers of this metro who shopped around: $ 95,886 (for a 30-year fixed-rate mortgage)

Los Angeles is the third city in California where homeowners can save a lot of money during the term of their loan simply by getting more deals and taking out the mortgage with the lowest interest rate.

Fortunately, LA is among the “15 cities where homebuyers get the best interest rates.”

Other cities

Seattle Hometown
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Here are the rest of the cities on the list and how much you can save by shopping around for a 30-year fixed-rate mortgage:

  • San Diego: $ 95,884
  • Seattle: $ 92,229
  • Boston: $ 85,405
  • Washington, DC: $ 79,567
  • New York: $ 78,492
  • Denver: $ 77,077
  • Portland, Oregon: $ 76,887

Has this list convinced you to shop around for a mortgage? Look past the Solutions Center and search for a good mortgage rate.

Publication: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

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