CABOR Says Home Owners Who Shop More, Save More
Millions of Americans have refinanced their mortgages as rates have dipped to new lows. However, mortgage lenders say that if home owners had shopped around more, they probably could have snagged an even lower rate and more savings.
Many borrowers settle on the first rate they are quoted, lenders say. LendingTree says that rates can vary by more than a percentage point for a borrower looking for a 30-year fixed loan.
One example: A consumer with a credit score of 759 and a loan amount of $260,000 might have received quotes from lenders in early October ranging from 3.25 percent to 4.625 percent. By choosing the lowest rate, the borrower would save $214 per month, $2,568 per year, and nearly $74,000 over the life of the loan.
Fewer than half of home owners say they shopped around when refinancing their loan, according to a survey by Harris Interactive of more than 1,000 home owners. On the other hand, 9 in ten American adults say they compare prices when shopping for major purchases.
According to, Chair Elect Joanne Zettl of the Cleveland Area Board of REALTORS® (CABOR), “This is not a quick process. If you take your time and get engaged, you will save money in the end. Remember, when you are ready to buy or sell your home, the Cleveland Area Board of REALTORS® is here to assist.”