--- title: Buying a House? This Overlooked Step Could Save You $1,200 a Year description: Zillow finds 7 out of 10 prospective homeowners don't shop around for a better mortgage rate. That's a costly mistake. authors: - name: Leslie Cook role: Editor, Real Estate url: https://money.com/author/leslie-cook/ bio: Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. education: Bryn Mawr College, BA History certifications: Certified Personal Finance Counselor at_money_since: 2019 articles: 798 covers: - Housing - Banking - Credit - Economy and Politics - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Taxes social: - https://twitter.com/LeslieLCook - https://www.linkedin.com/in/leslie-cook-9829b9198/ editors: - name: Julia Glum role: Managing Editor url: https://money.com/author/julia-glum/ bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. education: University of Florida at_money_since: 2018 articles: 453 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - Newsweek - International Business Times - CBS News - Good Morning America - WUSA9 - Pix 11 - The New York Times - Mashable - The Washington Post - CNBC - Politico social: - https://x.com/superjulia - https://www.linkedin.com/in/julia-glum published: '2025-12-17T16:36:02.000Z' modified: '2025-12-17T16:36:02.000Z' section: Housing tags: - News word_count: 481 canonical: https://money.com/mortgage-rate-shopping-saves-money/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Family standing in front of their house](https://img.money.com/2025/12/News-Homebuyers-Mistake.jpg) You may be missing out on an easy way to save on your monthly mortgage payments — and make your next home purchase more affordable. It turns out that most homebuyers skip an important step when applying for a home loan: shopping around. [Research](https://www.freddiemac.com/research/insight/20230216-when-rates-are-higher-borrowers-who-shop-around-save) has shown that borrowers who apply for a home loan from at least four lenders save $1,200 or more per year. Yet, according to a Zillow [report](https://www.zillow.com/research/mortgage-rate-shopping-35844/) published last week, 7 out of 10 prospective homeowners don't shop around for a better rate, opting instead to apply for a loan with a single lender. Whether it's because the loan application process seems complicated, borrowers have confidence in the first offer they receive or they believe that all [lenders](https://money.com/best-mortgage-lenders/) offer the same rates, the decision to only apply with a single lender "can be a missed opportunity that costs buyers tens of thousands of dollars over the life of the loan," as Zillow's senior economist Kara Ng wrote in the report. For example, a 30-year, $360,000 loan at Freddie Mac's current rate of 6.24% would have a monthly payment of about $2,345. The payment on the same loan at a half-point lower rate would be about $100 lower, representing annual savings of about $1,100. Those savings can multiply in markets where home values are more expensive, such as Seattle or San Jose, California. At the same time, a lower rate allows a borrower to qualify for a larger loan amount, increasing the number of homes a prospective buyer can afford and, therefore, the number of buying options. Depending on the market, securing half-point interest-rate reduction could result in hundreds more homes that fall within a buyer's budget. Aside from shopping for the best interest rates, prospective buyers will have a better chance of finding their dream home in the new year. Market conditions are shifting in favor of buyers. [Mortgage rates](https://money.com/current-mortgage-rates/?apxa1=homepage) have been on a downward trend since mid-July. These lower rates have already improved [affordability](https://money.com/what-does-affordable-housing-mean/) for some buyers who were on the sidelines. This trend is likely to continue into next year, as housing experts forecast that mortgage rates will remain in the current low-6% range. "This slight improvement in affordability actually unlocks some pent-up demand, especially for households who didn't get to \[buy\] in 2025," Ng says. Another factor that will help improve buying conditions is slowing home price growth, which Ng says she expects to rise by about 1% next year. Those price gains are expected to be offset by wage growth, which is [forecast](https://worldatwork.org/publications/workspan-daily/payscale-u-s-employers-forecast-3-5-pay-increases-for-2026#:~:text=Outside%20the%20U.S.%20and%20Canada,forecasts%20resembling%20the%202025%20actuals.) to increase by 3.5%. More disposable income, combined with lower monthly payments, is expected to make a home purchase more accessible to a wider segment of buyers. ## Buy your home with more convenience and less hassle ![View Rates](https://s3.consumersadvocate.org/prd/image/image/38130/medium_29a2a129-cf1d-4fcb-a92d-901b0c9bf0f6.webp) Our Partner [View Rates](https://money.com/go/47604a7e9fcb?bidid=4111665750&pmeta=p129-c488-u36862&ptid=670493751&ptoken=a22a859bb502b461fbef850d04cbd1ba) ![View Rates](https://s3.consumersadvocate.org/prd/image/image/39711/medium_85521de9-b6c5-4b35-a129-169c217d0287.webp) Our Partner [View Rates](https://money.com/go/d695508f106b?bidid=4111665752&pmeta=p129-c488-u36862&ptid=670493751&ptoken=9b702bcdaad41c800b8087283d760a2e) ![View Rates](https://s3.consumersadvocate.org/prd/image/image/34120/medium_4ba40e39-00f6-4f3e-9a12-67943aa4166f.webp) Our Partner [View Rates](https://money.com/go/ba813df74f3a?bidid=4111665751&pmeta=p129-c488-u36862&ptid=670493751&ptoken=894e817b802da133c2fc86558e010df6) ![](https://s3.consumersadvocate.org/prd/image/image/26681/medium_57f09f10-efb8-487d-a73e-5f7d605144eb.png) Imagine finally owning your dream home — Rocket Mortgage (NMLS #3030) can help! [View Rates](https://money.com/pr/t39f99e0e0ab?ap_referrer=%2Fmortgage-rate-shopping-saves-money%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/mortgage-rate-shopping-saves-money/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Buying", "item": "https://money.com/home-buying/" }, { "@type": "ListItem", "position": 4, "name": "Buying a House? 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