A Little Shopping Can Save You a Lot on Your Mortgage

When looking to buy a home or refinance your mortgage, one simple thing could reduce your monthly payments and save you thousands of dollars in interest -- and it's something that most people fail to do. In fact, it's so easy, you can start in less than one minute after reading this article.

Most borrowers fail to shop lenders

In a recent report, the Consumer Financial Protection Bureau found that 77% of consumers apply to only one lender when seeking a mortgage. The CFPB says failing to shop rates and terms among lenders can cost consumers thousands of dollars, considering higher interest rates and payments.

How to compare lenders in seconds

By shopping just three different lenders, borrowers could save more than $3,500 in just the first five years, according to the CFPB's research, and enjoy payments that are nearly $60 less per month.

By using an online mortgage rate tool, you can quickly find competitive lenders, narrowing the field to those with the most favorable interest rates and terms. Then, by applying to several lenders rather than just one, you can compare all-in costs and get your best home loan deal.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website.