Mortgage price dispersion, the variation of mortgage terms and the prices charged among lenders, gives borrowers the ability to potentially save significantly by comparison shopping before taking out a loan. A recent analysis by the Consumer Financial Protection Bureau (CFPB) reveals that borrowers who compare prices across lenders could save an average of 0.39 percentage points on their mortgage loans, which translates into a monthly savings of $43 on a typical $200,000 loan.
The CFPB report also showed that the more borrowers were willing to shop around, the more savings they could find. Borrowers who shopped at 10 or more lenders saw an average potential savings of 0.59 percentage points, equating to a monthly savings of $71 for same loan.
Therefore, the CFPB recommends that homebuyers explore their options when selecting a mortgage loan so that they can get the most favorable terms at the lowest cost.
Important Points:
• Mortgage price dispersion gives borrowers the ability to save
• CFPB analysis reveals savings of 0.39 percentage points, equating to $43 on a $200,000 loan
• Borrowers willing to shop around could save up to 0.59 percentage points, equating to $71
• CFPB recommends homebuyers explore options to get most favorable terms and lower costs
You can read this full article at: https://www.housingwire.com/articles/borrowers-could-save-100-a-month-or-more-by-shopping-around-for-mortgages-cfpb/(subscription required)
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