The Importance of Shopping Your Mortgage Rate

(12/17/25)  Most home shoppers spend months searching for the perfect home. But when it comes time to apply for the financing they need to afford that home, many gather quotes from only one mortgage lender.

According to Zillow, that’s a critical mistake that can cost a homeowner tens of thousands of dollars over the life of their loan.

According to the Zillow Consumer Housing Trends Report 2025, nearly seven in 10 mortgage shoppers submit only one application. That’s not surprising considering how rigorous and expensive the application process can be. However, it also represents a missed opportunity because, according to Zillow, a buyer can save $1,100 a year by reducing their mortgage rate just 50 basis points. A savings of this size would have made 22,000 more homes on the market affordable for a median-income U.S. household.

"Buyers often spend months finding the right home, but only minutes comparing lenders," said Kara Ng, a senior economist at Zillow Home Loans. "Even a small difference in rate can meaningfully shrink a monthly payment and expand the number of homes within reach. Affordability is tough enough today that buyers shouldn't overlook any potential savings."

Be sure to do your due diligence if you’re in the market for a new home – and that includes shopping around to ensure you are getting the best possible mortgage rate.