LendingTree finds homebuyers can save over $60,000 comparing mortgage offers
LendingTree's analysis of over 80,000 mortgage shoppers reveals that selecting the lowest interest rate can save borrowers an average of $62,572 over the life of a 30-year loan. The report highlights that receiving multiple offers increases savings potential, yet many consumers fail to negotiate terms. Negotiation proves effective for most, with 93% of those who tried lowering their monthly payment successfully.
*this image is generated using AI for illustrative purposes only.
Homebuyers can save an average of $62,572 over the life of a 30-year, fixed-rate mortgage by shopping around for the lowest interest rate, according to a new report from LendingTree. This potential saving, equivalent to $174 per month or $2,086 annually, highlights the substantial financial impact of comparing loan offers. The findings are based on an analysis of more than 80,000 mortgage shoppers on the LendingTree platform.
Key Savings and Rate Spreads
The report indicates that the average spread between the lowest and highest offered interest rates across all borrowers was 0.79 percentage points. However, for borrowers who received six or more offers, the spread widened to 0.98 percentage points. This increased spread boosts potential monthly savings from $174 to $227 and raises lifetime savings to $81,735.
| Metric | Value |
|---|---|
| Average lifetime savings | $62,572 |
| Monthly savings | $174 |
| Annual savings | $2,086 |
| Average rate spread (all borrowers) | 0.79 percentage points |
| Rate spread (6+ offers) | 0.98 percentage points |
| Lifetime savings (6+ offers) | $81,735 |
Borrower Behavior and Negotiation
Despite the clear financial incentives, the study found that many borrowers do not fully leverage the market. While two-thirds of mortgage holders compared quotes from multiple lenders, only 54% attempted to negotiate their mortgage terms. Generational and gender differences were evident, with Baby Boomers being the least likely to negotiate at 18%, compared to roughly 70% of Gen Zers and millennials. Men were also more likely to negotiate than women, with rates of 67% and 36% respectively.
Impact of Negotiating Terms
Negotiating often results in direct financial benefits. Among borrowers who negotiated their interest rate, 93% successfully lowered their monthly payment. Specifically, 37% of negotiators reduced their monthly payment by at least $100. Additionally, 34% of those who negotiated fees and closing costs lowered their upfront expenses by $2,000 or more, with 12% saving at least $5,000.
"Consumers have more power in the mortgage process than they often realize," said Jeff Lyons, LendingTree's General Manager of Lending. "Access to information and choice has never been more important, especially when even small differences in loan terms can have a major impact on long-term costs."
Methodology
LendingTree analyzed data from more than 80,000 users of its online loan marketplace who received two or more offers for 30-year, fixed-rate mortgage purchase loans between Oct. 1, 2025, and April 26, 2026. Researchers compared the lowest and highest interest rates offered to individual borrowers and calculated potential savings based on average mortgage amounts requested. Separately, LendingTree commissioned QuestionPro to conduct an online survey of 2,000 U.S. consumers ages 18 to 80 from May 4 to 6, 2026.
How might the rise of digital mortgage marketplaces influence the average rate spread over the next five years?
Will the high negotiation success rates of Gen Z and millennials persist as they age and enter different housing markets?
Could increased consumer awareness of rate spreads pressure lenders to standardize their pricing models?
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