NEW YORK–Americans will collectively pay $11 billion more than they needed to on their mortgages this year, according to new research from Tomo Mortgage.

Tomo said it analyzed approximately one-million loans from more than 1,000 different lenders and normalized each one for rate points, credit, purchase price, and down payment.

“The difference between the best and worst rates offered on any given day worked out to $287 per month in mortgage payments on a home that sold for the median sale price,” according to Tomo. “Between the lines: The gap between the best and worst rates was regularly as low as 0.5 percentage points between 2018 and 2021, but then the Federal Reserve started hiking rates in 2022.”

Additional Finding

The company said it found the gap between the best and worst rates rose to more than two percentage points on some days in the fall of 2022 (it’s now closer to 0.88 percentage points.)