Why 87% of homebuyers overpaid on their mortgage last year
A new Bankrate analysis of 3.2 million HMDA loans finds 87 percent of 2025 homebuyers overpaid on their mortgage rate, costing the typical borrower $78,186 over the life of the loan.
The latest data from Bankrate's analysis of 3.2 million HMDA loans is a wake-up call for homebuyers and the mortgage industry as a whole. The finding that 87 percent of homebuyers overpaid on their mortgage rate in 2025 is concerning, especially when considering the significant financial implications. For the typical borrower, this translates to $78,186 over the life of the loan, which is a substantial amount that could have been used for other expenses, savings, or investments.
This issue highlights the importance of shopping around for mortgage rates and seeking professional advice. Homebuyers often prioritize finding the right home, but the mortgage process can be complex and overwhelming. As a result, many may not take the time to compare rates and terms from different lenders, leading to costly mistakes. The paint industry, in particular, may see an indirect impact as homeowners who overpay on their mortgage may have less budget for home renovations and painting projects.
As the housing market continues to evolve, it's essential to watch how lenders and mortgage brokers respond to this issue. Will they take steps to educate homebuyers about the importance of comparing mortgage rates and terms? Will there be a shift towards more transparent and competitive lending practices? Homebuyers and industry professionals alike should keep a close eye on these developments, as they may have a significant impact on the housing market and the paint industry in the years to come.
Originally reported by inman.com. PaintNews adds analysis for real estate & property readers.