Interest rates are on the rise, and home buyers are looking for savings wherever they can. Shopping around for a mortgage can offer big differences among lenders, and those differences could amount to some potentially hefty savings over the life of a loan.
A new study by LendingTree measures the basis point spread between high and low annual percentage rates offered to users through the LendingTree marketplace among the 50 largest metros in the U.S. They found in certain metros, like San Francisco, borrowers could potentially save $280 per month in savings, or $99,544 over the lifetime in interest savings, by shopping around.
Home buyers see some of the largest differences in mortgage rates in Cincinnati and Houston, according to the study. In Cincinnati, the median home price is $169,100, and borrowers could save $67 in monthly payments (or about $798 per year and $23,672 in lifetime interest savings) by shopping around for their mortgage, the study found. Houston, San Antonio, and Dallas buyers also may find some of the largest differences in purchase mortgage rates that could then translate into savings, according to the study.
Source:
“LendingTree Reveals the Cities Where Borrowers Save the Most by Shopping Around for Mortgage Loans,” LendingTree (Oct. 17, 2018)
