CHARLOTTE, N.C. — Homebuyers who shop aggressively for mortgage financing can save more than $62,000 over the life of a 30-year mortgage, yet nearly half of borrowers never negotiate their loan terms, according to a National Mortgage Professional analysis of LendingTree data.
The analysis found that borrowers who secured the lowest available mortgage rate instead of accepting the highest rate offered saved an average of $174 per month, or $2,086 annually. Over the life of a 30-year fixed-rate mortgage, that translates into average savings of $62,572.
The findings are based on mortgage purchase requests submitted through LendingTree’s platform between Oct. 1, 2025, and April 26, 2026.
According to the analysis, the average lowest mortgage rate offered to borrowers was 5.93%, compared with an average highest offered rate of 6.72%, a spread of 0.79 percentage points.
Going With the Lower Rate
For every $100,000 borrowed, choosing the lowest available rate rather than the highest could save a borrower approximately $18,557 over the life of the loan.
While the savings remain substantial, they are lower than the $80,024 in potential savings LendingTree reported in an earlier 2025 analysis. The company attributed the decline to narrower rate spreads and lower mortgage rates overall.
Matt Schulz, LendingTree’s chief consumer finance analyst, told National Mortgage Professional that many consumers fail to comparison shop for a variety of reasons, including lack of awareness, uncertainty about the process and trust in recommendations from real estate professionals.
“There may be as many reasons as there are shoppers, but failing to shop around can be a big mistake,” Schulz said in the analysis.
The study found that borrowers who obtained more mortgage offers often achieved even greater savings.
Key Findings
Key findings included:
- Borrowers receiving six or more mortgage offers saw an average rate spread of 0.98 percentage points.
- Those borrowers could save an average of $227 per month.
- Lifetime savings for borrowers receiving six or more offers reached $81,735.
“Three should be the minimum you receive,” Schulz said of mortgage quotes. “That can help give you a good feel for what the market looks like.”
Potential savings varied significantly by geography, with borrowers in higher-cost housing markets benefiting the most from comparison shopping.
Cost of Location, Location, Location
According to LendingTree:
- Hawaii borrowers had the highest potential lifetime savings at $89,621.
- New Jersey ranked second at $81,955.
- California ranked third at $81,705.
At the metropolitan level:
- San Francisco borrowers could save as much as $112,942.
- San Jose, Calif., borrowers could save $111,893.
- San Diego borrowers could save $96,200.
The study also found many borrowers fail to negotiate mortgage terms even after obtaining multiple quotes.
While 66% of mortgage holders said they compared offers from multiple lenders during their most recent home purchase, only 54% said they negotiated loan terms.
Negotiating Costs
According to Lending Tree, negotiation rates varied significantly by demographic group:
- Approximately 70% of Gen Z and millennial borrowers reported negotiating.
- Only 18% of baby boomers said they negotiated.
- Sixty-seven percent of men negotiated, compared with 36% of women.
Among borrowers who did not negotiate:
- 26% said they trusted their lender.
- 20% did not realize negotiation was possible.
- 16% believed negotiating would not make a difference.
Those who negotiated often achieved meaningful savings, according to the analysis.
Among borrowers who negotiated interest rates:
- 79% focused on rate negotiations.
- 93% lowered their monthly payment.
- 37% reduced monthly payments by at least $100.
Borrowers who negotiated lender fees and closing costs also saw significant savings:
- 34% reduced upfront costs by at least $2,000.
- 12% saved $5,000 or more.
‘The Biggest Opportunity’
“The interest rate usually offers the biggest opportunity for savings because even a small reduction can lower monthly payments and save thousands of dollars over the life of the loan,” Schulz told National Mortgage Professional. “However, lender fees and some closing costs are often the easiest to negotiate.”
According to the National Mortgage Professional analysis, the findings suggest many borrowers continue to leave substantial amounts of money on the table by limiting both their comparison shopping and negotiation efforts during the mortgage process.
The analysis also highlighted an opportunity for mortgage lenders and brokers to educate consumers about evaluating multiple financing options, understanding loan pricing and negotiating both rates and fees before closing on a home loan.
