54% of Buyers Don’t Shop Around for a Mortgage, But 45% of Those Who Do Get a Better Offer [New LendingTree Report]

Written by Posted On Tuesday, 28 May 2024 08:05

Homebuying is no simple feat. It can be time-consuming, expensive and confusing, so it’s no wonder people want to cut corners. But those cuts can be costly, especially when mortgage shopping.

Our latest survey found that the majority of buyers don't shop around for a mortgage and many are leaving money on the table because of that. Here’s what else we found. 

  • Over half (54%) of those who took out a mortgage for their most recent home purchase only got one loan offer. Meanwhile, 22% got two offers and 17% got three or more. 
  • Among those who compared more than one mortgage offer, 45% say the lowest offer didn’t come from their first lender.
  • Refinancers are more savvy with comparison shopping. Of the 45% of homebuyers who refinanced, 56% shopped around. Comparison shopping paid off, as 81% found a lower rate than their current lender offered.
  • Over a third (35%) of buyers say they purchased a home earlier than planned to take advantage of low rates. 

You can check out our full report here: https://www.lendingtree.com/home/mortgage/shopping-around-survey/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say:


"The exact amount that a borrower can save by shopping around for a mortgage will vary based on factors such as the rates they’re offered and the size of their loan. That said, it’s not out of the realm of possibility for someone who received multiple offers and then picked the one with the lowest rate to save hundreds of dollars a month, thousands of dollars a year and tens, if not hundreds, of thousands of dollars over the lifetime of their loan."

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LendingTree

LendingTree is an online lending marketplace headquartered in the United States. The business platform allows potential borrowers to connect with multiple loan operators to find optimal terms for loans, credit cards, deposit accounts, insurance, etc.

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