If you’re planning to buy a home and feeling discouraged by today’s mortgage rates hovering around 7%, there’s some good news: doing your homework and comparing lenders can pay off in a big way.
A recent report by LendingTree, based on over 80,000 mortgage applications from early 2025, reveals that borrowers could save an average of $80,024 over the life of a 30-year fixed-rate loan simply by choosing the most competitive offer. That’s around $222 in savings each month, or $2,667 annually.
This year’s savings potential is even greater than in 2024, when average lifetime savings from rate shopping were $76,410. The difference of nearly $3,614 shows that as interest rates remain elevated, the value of shopping around only grows.
“It really pays to compare offers,” said Hannah Jones, Senior Economic Research Analyst at Realtor.com. “Our research shows that borrowers can save up to 86 basis points by going with the most favorable mortgage terms.”
Big Savings in High-Cost States
LendingTree’s analysis looked at applicants who received multiple quotes for 30-year fixed-rate mortgages between January and April 2025. By measuring the spread between the lowest and highest Annual Percentage Rates (APR) offered, they calculated potential savings based on average loan amounts in each state.
Here’s where borrowers stand to gain the most:
- California: Average mortgage of $510,776 = $118,393 in savings
- Washington: $437,948 = $109,012 saved
- Hawaii: $506,980 = $105,473 saved
In seven states, locking in the lowest rate could cut more than $100,000 off the total cost of the loan.
Why Rates Vary Between Lenders
Even with the same credit profile and loan amount, borrowers can receive vastly different rate offers depending on:
- Debt-to-income ratios
- Risk tolerance models
- Operational costs
- Market competition
- Local lender policies
This explains why APR spreads ranged from 1.15 percentage points in Minnesota (the widest) to just 0.73 points in New York and Louisiana (the narrowest).
“There’s a lot that goes into a lender’s rate offer, and not all borrowers are treated the same,” Jones noted.
More Time to Compare in Today’s Market
With the national median home price sitting at around $440,000, and listings now lingering on the market for a median of 51 days, buyers have a bit more breathing room to evaluate their financing options.
That extra time can be critical for comparing rates and locking in a better deal.
Fixed-Rate Mortgages Offer Predictability
Despite current high interest rates, fixed-rate mortgages still offer long-term peace of mind.
Bottom Line:
Shopping around for a mortgage isn’t just a smart move it could be one of the most financially impactful decisions you make during your homebuying journey. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.