A weekly index of competition between mortgage lenders’ offers to borrowers has shown a further widening between the best and worst offers.
LendingTree’s Mortgage Rate Competition Index for the week ending August 12 shows that homebuyers could have saved $27,311 over the lifetime of a 30-year $300K loan by shopping around.
Across all purchase loan applications on LendingTree for the week, the index was 0.59, up 0.02 from the previous week. That means a 0.59% spread between the best and worst offers.
For refinances, the index was wider than the purchase market at 0.68, up 0.03 from the previous week. Using the same assumptions in the previous example, borrowers shopping for refi loans could have saved $31,532 by shopping for the lowest rate.
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