Key Takeaways
- Getting quotes from four mortgage lenders could save you more than $1,200 a year.
- Even one extra quote could lower your rate by up to 0.28 percentage point.
- Lender referrals aren’t always in your best interest. Make sure to vet the loan officer and offer yourself.
Most homebuyers don’t realize how much they could save by getting more than one mortgage quote. But research shows it can make a real difference for your wallet.
According to Freddie Mac’s 2025 report, “When Rates Are Higher, Borrowers Who Shop Around Save More,” getting at least four quotes can save borrowers $600 to $1,200 a year. Another research paper, this from the Federal Reserve Bank of Philadelphia, found that even one extra quote can lower rates by up to 28 basis points for low-income borrowers.
In today’s rate environment, rate shopping isn’t just smart—it’s essential. Learn why rate shopping works, how to do it correctly, and what to watch for when comparing quotes.
Why People Skip Rate Shopping
Many mortgage borrowers skip rate shopping even though comparing offers can save hundreds—or even thousands—of dollars. In late 2022, when mortgage rates surged past 7%, Freddie Mac found that the difference between offers for the same borrower profile more than doubled compared to the previous decade.
Some borrowers assume big-name lenders or online platforms always offer the best deal. According to Jennifer Beeston, mortgage expert and executive vice president of national sales at Rate, this trust is often misplaced. “They’re falling for marketing,” she said. “They don’t know how much money is on the line.”
Real estate referrals aren’t always reliable either. “Most real estate agents do not care about interest rates and fees,” Beeston said. It’s better to do your own research.
How To Shop for Mortgage Quotes the Right Way
Getting multiple quotes doesn’t have to be overwhelming, but it does take planning. Start by researching the individual loan officer, not just the company. Beeston advises calling first to ask who you’d work with, then looking up reviews before starting an application.
When you’re ready to compare, timing really matters. “Rates change every single day, and sometimes they can change multiple times a day,” she said. That means quotes should be gathered on the same day for a fair comparison.
Also pay attention to how you’re treated. If a mortgage lender dodges questions or won’t explain their fees, move on.
Note
If a lender tells you “don’t worry about the details,” or resists talking about fees, that’s a red flag.
What To Focus on When Comparing Quotes
When comparing offers, take time to read the loan estimates carefully. Beeston recommends focusing on the loan estimate’s Box A, the origination fees. That’s where the lender’s actual charges are listed. Other fees, like title or escrow, can be underestimated to make the total cost look lower.
Beeston also cautions borrowers not to rely on quotes that aren’t locked. “Unless you have a locked loan estimate, it is not binding,” she said.
For an accurate comparison, make sure you’re looking at quotes from the same day, with rates and points clearly disclosed.
Get Multiple Quotes for Refis, Too
Rate shopping matters for refinancing, too. Some lenders pitch borrowers on rolling high-interest debt into a new mortgage using a “blended rate,” but Beeston warns this can backfire.
In many cases, a HELOC, or home equity line of credit, or other option would be more cost-effective, but keep in mind that lenders may push full refinances to increase their commission.
The Bottom Line
Always get multiple quotes and talk to more than one lender. The brand reputation doesn’t matter as much as the actual person who will be working with you to get the best quote.
Ask tough questions, read reviews, and don’t settle for vague answers. Make sure you understand how to read a loan estimate and compare same-day offers only.
Whether you’re buying a home or refinancing, a little homework can save you a lot of money.
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