Americans love a bargain, but when it comes to buying a house, they don't always get the best deal. Only 47 percent of all Americans compared lenders when shopping for a mortgage, according to a surveyof 2013 mortgage applicants by the Consumer Financial Protection Bureau.
47 percent of homebuyers didn't comparison shop for mortgage
Consumers are missing out on big savings by not shopping around
By buchtjd
January 13, 2015 at 10:38PM
The group found that even seemingly insignificant variations in mortgage rates can make a big difference in a family's finances. The esearch showed the rate on a 30-year fixed rate conventional loan could vary by as much half a percent point. The difference, for example, between a 4.0 percent and 4.5 percent interest rate translates into a savings of about $60 per month. Over the first five years of the mortgage, that saves about $3,500 in mortgage payments. And the lower interest rate also means that you'd pay off an additional $1,400 in principal in the first five years. Always smart to remember that the cost of a mortgage goes beyond the rate, there are closings costs and other fees to consider. Here's a link to a helpful guide to shopping for a mortgage.
Have you recently attempted to comparison shop for a mortgage? If so, send an email to my colleague, john.ewoldt@startribune.com.
- Jim Buchta
