{"id":27196,"date":"2026-06-26T20:56:00","date_gmt":"2026-06-26T18:56:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=74b2a8354002e63e7c8e9d846d9bd4d2"},"modified":"2026-06-26T20:56:00","modified_gmt":"2026-06-26T18:56:00","slug":"87-of-american-borrowers-are-overpaying-for-their-mortgages-costing-households-65b-annually","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=27196","title":{"rendered":"87% of American Borrowers are Overpaying for Their Mortgages, Costing Households $65B Annually"},"content":{"rendered":"

\nBankrate study reveals the \u201chidden homeownership tax\u201d \u2014 an annual drag of over $3,300 annually on household wealth that penalizes borrowers across every income level, age group, and credit tier<\/i><\/p><\/a><\/a>

NEW YORK--(BUSINESS WIRE)--New Bankrate research finds 87% of American mortgage borrowers are likely overpaying for their home loans as of 2025. It's not because better rates were unavailable \u2014 it's because most borrowers never found them. The $65 billion Americans who bought mortgages since 2022 overpay each year could have been saved had borrowers used Bankrate's mortgage auction, where lenders compete in real time on price alone. That's not a market problem. It's an access problem \u2014 and it's a solvable one.<\/p>

\nBorrowers paid an estimated $65 billion in excess interest each year across mortgages originated since 2022, which comes out to about $3,343 per household annually. For the typical borrower, that adds up to $78,186 over the life of a 30-year loan, more than the median American household\u2019s total retirement savings.<\/p>

\n\u201c<\/i>The dream of homeownership feels increasingly out of reach for millions of Americans, so it\u2019s worth asking whether the problem is the market or the process,\u201d said Bankrate CEO Matt Fellowes, the primary author of the study. \u201cOur research suggests that for most borrowers, competitive rates exist; borrowers just never see them. When lenders compete for a borrower\u2019s business, the savings are meaningful and immediate: $279 a month on average, an amount that puts homeownership out of reach for many borrowers.\u201d<\/p>

\nA mortgage is the single largest financial contract most people will ever sign. While homeownership has long been considered the engine of middle class wealth creation in America, Bankrate\u2019s research confirms the debt that wealth is built on materially weighs down Americans\u2019 financial outcomes.<\/p>

\nThe study calls for two market-based policy responses:<\/p>

\n1) A requirement that lenders disclose a benchmark rate for similarly qualified borrowers alongside any mortgage offer, and<\/p>

\n2) A voluntary certification framework for lenders that compete in transparent multi-lender marketplaces.<\/p>

\nNeither requires new government programs, and both are designed to make the competition that already exists in the mortgage market visible to the borrowers who need it most.<\/p>

\nBankrate was built on a simple premise: People deserve to know what the market actually offers them. They get better outcomes when banks compete for their business, and they pay a steep price when the leverage they can apply goes unused. People deserve access to the information lenders would prefer to keep to themselves, and the ability to act on that information when making big financial decisions like applying for a mortgage.<\/p>

\nKey Findings<\/b><\/p>