Shopping around could have saved borrowers $26K last week

by Steve Randall29 Mar 2018

Mortgage borrowers who shop around for the best deal could have saved $26,166 last week, up 26% from a year ago.

The figure is based on the median spread between the lowest and highest mortgage rate calculated by LendingTree for its Mortgage Rate Competition Index.

For purchase loans, there was a gap of 0.56% between the upper and lower rates and the $26,166 figure would be the saving on a 30-year FRM for a $300,000 home by taking the lowest rate. The gap was down from 0.60 in the previous week.

For refinance loans, the saving is even larger. With a 0.59% difference, the saving on the same size loan would be $27,311.  The gap was down from 0.64 a week earlier.

Potential savings larger in 2018
The savings possible for borrowers are larger this year than in 2017. For purchase loans the average is $27,000, up from $21,000 last year; for refinances it’s $29,000 compared to $26,000.

LendingTree says that there is likely to be little change in mortgage rates this week following the Fed last week and little economic data this week. Rates will also be impacted by markets being closed Friday.

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