In a recent analysis, LendingTree utilized its Mortgage Rate Competition Index to reveal the difference in rates and potential savings for mortgage shoppers in the 50 largest housing markets across the country.
According to the company’s findings, the average homebuyer can save as much as $31,000 over the lifetime of a loan by shopping around for a mortgage.
Additionally, LendingTree’s data indicated that American homebuyers save the most in California when comparison shopping.
“Savvy shoppers can save over $44,000 in San Francisco, the most of any city in our study,” LendingTree writes. “The savings are comparable in San Diego, but slightly smaller, at about $43,000.”
Although the Golden State reigns supreme in savings, LendingTree determined that shoppers in Denver can save more than those in Los Angeles and New York.
“The average buyer can save $42,123 if they shop around in Denver, good for No. 3 on our list,” LendingTree writes. “This is higher than the potential savings for buyers in places like Seattle, Los Angeles and New York.”
According to LendingTree, these are the top 3 cities where borrowers save the most in lifetime interest payments by comparison shopping for a loan:
Lifetime interest savings: $44,028
Median home loan amount: $332,500
Monthly payment savings: $124
Annual payment savings: $1,484
Lifetime interest savings: $42,780
Median home loan amount: $297,500
Monthly payment savings: $120
Annual payment savings: $1,441
Lifetime interest savings: $42,123
Median home loan amount: $292,500
Monthly payment savings: $118
Annual payment savings: $1,419
Note: LendingTree’s data is based on the combination of rate and fees into an APR, measuring the spread as the difference between the highest and lowest offers.