According to a survey by ICE Mortgage Technology, 84 percent of homeowners who have taken out a mortgage in the last five years only considered one or two lenders before closing the deal.
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When it comes to choosing a mortgage lender, finding the lowest rate is crucial for consumers. However, a survey of over 2,000 consumers by ICE Mortgage Technology revealed that many still do not bother to compare rates.
The survey, titled ICE’s 2024 Borrower Insights Survey, found that the most important factors when selecting a lender include cost, speed, and having a variety of terms and products to choose from.
Source: ICE Mortgage Technology 2024 Borrower Insights Survey.
While 68 percent of respondents considered finding the lowest interest rate as the top factor, other considerations included low lender fees, time to close, and loan terms and products variety.
Despite the potential savings from comparing rates, the survey revealed that a large number of homeowners only considered one or two lenders before finalizing their mortgage deal.
Research has shown that obtaining multiple rate quotes can lead to significant savings on mortgage payments. However, the survey found that only a small percentage of borrowers compared rates from multiple lenders.
The survey results indicate the importance for lenders and servicers to leverage technology and tools to meet the evolving needs of customers and stay competitive in the market.
While some borrowers may have concerns about shopping around for rates, tools like mortgage product and pricing engines make it easier to compare rates from different lenders without impacting credit scores.
For those who are hesitant to shop around, reasons include concerns about credit score impact, satisfaction with the first lender contacted, time and effort required for shopping, belief that all lenders offer similar rates, and reluctance to share financial information.
It’s important for consumers to research rates from various sources and compare costs for other services like title insurance and settlement services before finalizing a mortgage deal.
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