WE SHOP TO FIND THE BEST PRICE FOR LAPTOPS OR APPLIANCES, WHY NOT THE BIGGEST PURCHASE OF YOUR LIFE?
Big lenders have big overhead and management salaries built into their interest rates.
Failing to shop for a mortgage could cost you. Consumers who consider interest rates offered by multiple lenders or brokers may see substantial differences in the rates. For example, our research showed that a borrower taking out a 30-year fixed rate conventional loan could get rates that vary by more than half a percent. Getting an interest rate of 4.0% instead of 4.5% translates into approximately $60 savings per month. Over the first five years, you would save about $3,500 in mortgage payments. In addition, the lower interest rate means that you’d pay off an additional $1,400 in principal in the first five years, even while making lower payments.
The survey of 2013 mortgage borrowers found that modern mortgage borrowers:
- OFTEN FAIL TO SHOP: Almost half of borrowers seriously consider only a single lender or broker before deciding where to apply.
- SAVE THOUSANDS: A lower rate could save you tens of thousands of dollars over the life of your loan.
- PUT YOUR SAVINGS TO USE: Keep your savings in the bank, pay off your loan early, make improvements or even splurge on a vacation.