Californians can save big by comparing mortgage options, with new data showing potential lifetime savings of more than $110,000—the highest in the nation.
LendingTree, an online loan comparison platform, analyzed data from over 80,000 users who received multiple offers for 30-year fixed-rate mortgages between January and April 2024. The analysis revealed that borrowers who chose the most favorable offer saved an average of $80,024 over the loan term—about $222 per month or $2,667 per year.
That’s roughly $3,600 more than the previous year’s figure, due to rising home prices and mortgage rates.
In California, the savings were even greater. Buyers in the state saved an average of $110,393, or $329 per month, by selecting the best offer. This was based on the average mortgage amount of $510,776, comparing the lowest average rate of 6.76% with the highest at 7.71%—a difference of just 0.95 percentage points, but one that significantly affected total repayment.
The study used the Annual Percentage Rate (APR), which includes not only interest but also points, broker fees, and other associated costs.
Ethan Baik, the board chair of the Korean Real Estate Brokers Association of Southern California, advised buyers to research extensively. “Each lender offers different strengths in conventional, high-balance, or jumbo loans,” she said. “You shouldn’t jump at the lowest interest rate without checking for hidden conditions.”
Industry experts noted that mortgage rates vary not just by credit score but also by lender-specific factors like risk models, operational costs, loan types, and market competition.
Hannah Jones, a senior economic analyst at Realtor.com, emphasized that even the same borrower may receive very different rate offers. “You should always compare quotes from at least three lenders. That’s the key to saving tens of thousands over time,” she said.
Experts also highlighted that fixed-rate mortgages offer predictability and are especially valuable when rates are high. In the current market, they recommend buyers take the time to shop around and evaluate multiple options before committing.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
