Study Finds Majority of Homebuyers Paying Excess Mortgage Interest
Bankrate’s analysis shows that 87% of mortgage borrowers are overpaying, losing an average of $3,300 each year.
A new Bankrate report indicates that 87% of mortgage borrowers are not securing the lowest possible rates, costing the typical homeowner over $3,300 each year. Over the life of a standard 30-year loan, this excess could exceed $78,000. Analyst Alex Gailey explains that many borrowers accept a realtor’s preferred lender or a personal recommendation instead of shopping around, reducing market competition.
He recommends obtaining multiple quotes—ideally three or more—on the same day to ensure comparable terms. Even existing homeowners who refinance are often paying more than necessary. The study calls this hidden expense a “homeownership tax” and urges consumers to actively compare offers before signing.
Why it matters
Homeowners can save thousands by simply comparing mortgage rates before committing.
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