Bankrate Finds 90% of Homeowners Overpay Mortgage Rates
Nine in ten US homeowners pay more than needed for loans. The avoidable annual cost averages over $3,300 per household.
Key points
- Bankrate analysis shows 90% of homeowners overpay for their mortgage rates.
- The average annual overpayment is $3,300, totaling over $78,000 on a 30-year loan.
- Experts recommend getting same-day quotes from multiple lenders to compare fees accurately.
Nine in ten US homeowners overpay on their mortgages. Bankrate attributes this widespread financial loss to a lack of rate shopping. The typical household loses more than $3,300 annually due to this specific inaction.
This hidden cost compounds significantly over the life of a loan. A standard thirty-year fixed mortgage carries an avoidable burden exceeding $78,000. Alex Gailey of Bankrate identifies this gap as a hidden homeownership tax.
Avoidable Costs Compound Over Time
The financial impact extends beyond the initial purchase price. Families forfeit capital that could fund retirement or education. Gailey notes that this lost potential directly hinders wealth accumulation for many American households.
Strategies To Secure Better Rates
Experts advise requesting multiple quotes on the same day. This timing ensures accurate comparisons of interest rates and fees. Buyers should demand itemized line-by-line quotes from each lender to identify true costs.
Comparing discount points and origination fees is essential. Using a mortgage calculator helps determine the target rate based on credit. This preparation allows buyers to establish a clear walk-away threshold.
KPTV Reports On Mortgage Savings
KPTV highlights the urgency of reviewing current mortgage terms. The data suggests that passive lending relationships cost the most. Active comparison remains the primary method for recovering lost funds.
