How Smart Borrowers Save Thousands on Their Mortgage

When you’re buying a home in San Diego, one of the smartest moves you can make isn’t just finding the right house, it’s finding the right lender.

A lot of buyers assume mortgage rates are the same everywhere. They’re not. A recent Realtor.com® study looked at nearly two million loans and found that buyers who compared multiple lenders saved an average of $44,000 over the life of their mortgage.

That’s a huge difference — and it’s just one of the ways smart buyers keep more money in their pocket. Let’s talk about a few others.

Your Choices Matter More Than the Market

You can’t control the overall economy, but you can control how lenders see you.

When average rates were around 6.6%, borrowers with stronger profiles were getting closer to 6.25%, while others landed near 7%. That half-point difference? It adds up to more than $60,000 in savings on a $425,000 home over 30 years.

So while we can’t time the market, we can absolutely influence what you pay.

Shop Your Lender Like You Shop for Homes

Comparing lenders takes a little effort, but it’s one of the easiest ways to save big.

In Realtor.com’s analysis, interest rates varied by as much as 0.55% from one lender to another and that’s real money.

For example, on a $425,000 home with 20% down, that difference could mean:

• $122 less per month

•  $1,464 per year

• Nearly $44,000 over 30 years

Not bad for making a few extra calls.

Pro tip: Contact at least three lenders on the same day and ask for a written rate quote. Review not just the interest rate, but also the fees, points, and total loan costs. If you have a preferred lender, don’t be afraid to ask others to match or beat their offer.

Credit & Down Payment Moves That Pay Off

Even small improvements in your credit can make a big difference.
Moving from “good” (660–720) to “very good” (720–760) could save you about $24/month or more than $8,000 over your loan’s lifetime.

The same goes for your down payment. Jumping from 10% to 20% down not only eliminates PMI, but it also lowers your rate — saving roughly $281/month or over $100,000 across 30 years.

If that feels out of reach, start with what you can control: paying down small debts, improving your credit, and exploring local assistance programs.

Here are a few examples:

• FHA loans: as little as 3.5% down

• VA loans: 0% down for eligible veterans

• USDA loans: 0% down in qualifying rural areas

• California assistance programs: often include grants or low-interest loans for first-time buyers

Property Type Can Affect Your Rate

Your rate doesn’t just depend on your profile — the property matters too.

Investment properties or second homes usually carry slightly higher rates. Condos and manufactured homes can also cost a bit more to finance, while single-family homes tend to qualify for better terms.

Your lender can help you compare options early, so you know exactly how your property type might impact your loan.

Smart Ways to Save Even After You Buy

Once you’ve locked in your loan, you can still make choices that save you money long term:

• Shop your homeowners insurance each year, rates vary more than you think.

• Bundle home + auto insurance for up to 20% off.

• Upgrade for energy efficiency  better windows and insulation can cut bills by 10–30%.

• Check your property tax assessment after closing; if it looks too high, appeal it.

• Set up auto-pay some lenders offer small interest rate or fee discounts.

Little adjustments like these can free up real breathing room in your monthly budget.

Why Your Agent Matters

A great buyer’s agent can save you money long before you get to the closing table. It’s not just about finding the house — it’s about knowing value.

Here’s what a strong negotiator does for you:

• Spots listings priced below market before everyone else does.

• Uses local data to keep you from overpaying.

• Negotiates for credits, concessions, or repairs after inspections.

• Keeps your offer competitive without stretching your budget.

Having an experienced San Diego agent in your corner (hi 👋) can be the difference between overpaying — and winning the right home with confidence.

The Bottom Line

Buying a home isn’t just about timing the market — it’s about making smart, informed decisions that build stability and freedom over time.

Start by comparing lenders, strengthen your credit, and partner with an agent who knows how to protect your money and your goals.

Because in San Diego, where every dollar counts, those smart moves can turn a good purchase into a great one.