87% of American Borrowers are Overpaying for Their Mortgages, Costing Households $65B Annually
Bankrate study reveals the “hidden homeownership tax” — an annual drag of over $3,300 annually on household wealth that penalizes borrowers across every income level, age group, and credit tier
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 — 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 — and it's a solvable one.
Borrowers 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’s total retirement savings.
“The dream of homeownership feels increasingly out of reach for millions of Americans, so it’s worth asking whether the problem is the market or the process,” said Bankrate CEO Matt Fellowes, the primary author of the study. “Our research suggests that for most borrowers, competitive rates exist; borrowers just never see them. When lenders compete for a borrower’s business, the savings are meaningful and immediate: $279 a month on average, an amount that puts homeownership out of reach for many borrowers.”
