Shop Mortgage Lenders & Save
Before getting into the details of how you can save an extra $24k, let's ask a simple question. If you were car shopping, would you only go to one dealer? If you were buying a plane ticket, would you just call up one airline?
In the same way, anyone who is considering refinancing their mortgage would really be cheating themselves if they didn't shop mortgage lenders. While we've always known this in a general way, a new study conducted by LendingTree shows just how much money people gain when they shop lenders. Or, you could also look at like this:
How much money are you gifting your bank or broker by NOT shopping around?
In the study, which included anonymized data from more than twenty thousand borrowers, LendingTree, one of the nation’s largest and most respected mortgage comparison-shopping websites, found that borrowers who compared at least two different mortgage offers could save $11,000 over the life of the loan due to the difference in interest rates being offered. Those who compared three offers? A cool $16,000 in potential savings.
Now for the kicker: smart shoppers who compared five different mortgage offers could save a whopping $24,000 on an average-size loan solely because of the difference in interest rates. That’s serious money.
So How Do You Easily Compare Lenders?
Simple. LendingTree's mortgage comparison shopping service makes it easy. The free service connects you with up to five competing banks, and you can use it to pit each bank against the others. This way you can walk away from the process secure in the knowledge that you're one of the smart shoppers, and got the absolute best loan you could get.
One last note. Given the fact that interest rates are near all-time lows (we’ve seen recent rates as low as 2.75% APR on a 15 yr), and that they’ve been creeping upwards recently, waiting may not be the smart move. But seizing the chance to comparison shop before rates go up any further definitely is.