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(Midwest) -- A new study from Bankrate finds homeowners across the country, including in the Midwest, are overpaying for their mortgage.
Bankrate's research found 9 in 10 Americans didn't get the lowest mortgage rate available to them, resulting in a higher monthly payment than they could have locked in had they compared multiple offers and gotten quotes from multiple lenders.
In Iowa, the state's major cities are no exception, with a large majority of homeowners overpaying for their mortgage:
- Des Moines: 83% of residents are overpaying an average annual overpayment of $2,106
- Cedar Rapids: 79% of residents are overpaying an average annual overpayment almost $1,382
- Davenport: 81% of residents are overpaying an average annual overpayment of $1,390
Bankrate finds the same trend in metropolitan areas across the Midwest, including:
- Omaha,NE: 92% of residents are overpaying an average annual overpayment of $3,387
- Madison, WI: 88% of residents are overpaying an average annual overpayment of $2,592
- Eau Claire, WI: 93% of residents are overpaying an average annual overpayment of $2,817
Alex Gailey, data analyst with Bankrate says homeowners stand to benefit from getting a number of rate quotes: "Get multiple quotes from different lenders. Ideally at least three and ideally on the same day, because rates do change every day. That direct comparison is what will empower you then to negotiate and to secure the best mortgage."
The full report is available on Bankrate's website.