Mortgage borrowers who shop around for financing could save an average of $62,572 over the life of a 30-year fixed-rate loan, yet nearly half never attempt to negotiate their mortgage terms, according to a new study from LendingTree.
The analysis found that borrowers who secured the lowest available rate rather than the highest offered rate saved an average of $174 per month, or $2,086 annually. Over the life of a loan, those savings add up to $62,572.
The findings are based on mortgage purchase request data submitted through LendingTree's platform between Oct. 1, 2025, and April 26, 2026.
Across all borrowers analyzed, the average lowest offered mortgage rate was 5.93%, compared to an average highest offered rate of 6.72%, creating a spread of 0.79 percentage points.
For every $100,000 borrowed, securing the lowest available rate rather than the highest could save borrowers an estimated $18,557 over the life of a 30-year mortgage, according to the report.
The potential savings remain significant, though lower than the $80,024 LendingTree reported in an earlier 2025 analysis. The company attributed the decline to narrowing rate spreads and lower mortgage rates overall.
"Some don't know that shopping around makes a difference," said Matt Schulz, chief consumer finance analyst at LendingTree and author of Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life. "Some don't know how to shop around. Some are nervous about asking and fear that doing so might make things worse. Some trust their real estate agent or others to point them to the right lender and don't want to take the time to compare. There may be as many reasons as there are shoppers, but failing to shop around can be a big mistake."
Schulz added that in today's affordability-constrained market, "the last thing any of us needs is to pay more than we should, especially with a mortgage."
More Offers, More Savings
The report found that borrowers who obtain more mortgage quotes may unlock even greater savings opportunities.
While the overall spread between the lowest and highest average offered rates was 0.79 percentage points, borrowers who received six or more offers saw the spread widen to 0.98 percentage points.
That translated into potential monthly savings of $227 and lifetime savings of $81,735.
"Three should be the minimum you receive," Schulz said of mortgage quotes. "That can help give you a good feel for what the market looks like."
Savings Vary By Market
Borrowers in higher-cost housing markets stood to gain the most from shopping around.
According to LendingTree, borrowers in Hawaii could save the most by comparing mortgage offers, with potential lifetime savings of $89,621. New Jersey followed at $81,955 and California at $81,705.
"This is primarily about property value," Schulz said. "The more expensive the property, the more you stand to save by reducing your interest rate."
At the metro level, San Francisco borrowers had the greatest potential savings at $112,942, followed by San Jose, Calif., at $111,893 and San Diego at $96,200.
Negotiation Remains Underused
Despite the potential savings, the study found many borrowers stop short of negotiating their mortgage terms.
While 66% of mortgage holders said they compared quotes from multiple lenders during their most recent home loan process, only 54% said they negotiated.
The gap was particularly pronounced among older borrowers. Just 18% of baby boomers reported negotiating their mortgage, compared with roughly 70% of Gen Z and millennial borrowers. Men were also far more likely to negotiate than women, at 67% versus 36%.
Among borrowers who chose not to negotiate, 26% said they trusted the lender they selected, while 20% said they did not realize negotiation was an option. Another 16% believed negotiating would not make a difference.
For those who did negotiate, however, the results were often meaningful.
Most focused on interest rates, with 79% negotiating rate terms. Among those borrowers, 93% lowered their monthly payment, including 37% who reduced it by at least $100 per month.
Many borrowers also negotiated lender fees and closing costs. Of those who did, 34% reduced upfront costs by at least $2,000, while 12% saved $5,000 or more.
"The interest rate usually offers the biggest opportunity for savings because even a small reduction can lower monthly payments and save thousands of dollars over the life of the loan," Schulz said. "However, lender fees and some closing costs are often the easiest to negotiate."
What It Means
The findings suggest borrowers continue to leave substantial savings on the table by limiting their shopping and negotiation efforts.
For mortgage professionals, the study highlights an opportunity to educate consumers not only about comparing offers, but also about understanding loan structure, fees, and pricing options. It also reinforces the value proposition of mortgage brokers and lenders that can present borrowers with multiple financing choices rather than a single loan option.
