Borrowers’ savings from shopping around better than last year

by Steve Randall05 Jul 2018

Mortgage borrowers could have saved a median $26,595 on the lifetime of a $300K loan last week if they had shopped around for the best rate.

The LendingTree Mortgage Competition Index shows that there was no change in the spread of rates available from lenders on its platform compared to a week earlier.

For purchase loans, the spread was 0.57, meaning a 0.57% gap between the lowest and highest rates available; for refinances the spread was 0.65 which would mean a $30,185 saving over the lifetime of the loan.

The index is showing that savvy borrowers are saving more on average in 2018 than they did in 2017.

Rates not deterring buyers
Echoing the view of CoreLogic’s latest HPI, LendingTree’s chief economist Tendayi Kapfidze says that buyers are still keen to buy even if that means higher rates.

“Rising rates have yet to temper demand, which is supported by a robust labor market, thus buyers should do all they can to position themselves competitively. Getting financing in place ahead of the house hunt is crucial, and we strongly advise buyers compare multiple loan offers first,” he said.

 


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