ICE Mortgage Technology survey finds 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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Finding the lowest rate is the most important factor to consumers when choosing a mortgage lender, but most still can’t be bothered to comparison shop, according to a survey of more than 2,000 consumers by ICE Mortgage Technology.
ICE’s 2024 Borrower Insights Survey polled an equal number of homeowners and renters and found that the most important factors when choosing a lender boiled down to cost, speed, and having a variety of terms and products to choose from.
Source: ICE Mortgage Technology 2024 Borrower Insights Survey.
While 68 percent said finding the lowest interest rate was the most important factor in choosing a lender and 48 percent listed low lender fees, time to close (33 percent) and the variety of loan terms and products (32 percent) can also play a role in the decision-making process.
Only 21 percent said a referral from a Realtor was one of the most important factors in choosing a lender, and the availability of a Web or mobile-based application was important to just 17 percent of those surveyed.
Source: ICE Mortgage Technology 2024 Borrower Insights Survey.
Given that costs can vary significantly between mortgage lenders, it might be surprising that 84 percent of homeowners who had taken out a mortgage in the last 5 years only considered one (36 percent) or two (48 percent) lenders before closing the deal.
Last year, Freddie Mac published research demonstrating that borrowers who obtained two rate quotes stood to save as much as $600 a year on their mortgage payments, and getting at least four rate quotes could have saved more than $1,200 a year.
Another study by the…