Bankrate Research — 2026
The Hidden
Homeownership Tax
You probably overpaid on your mortgage
87% of American borrowers did — not because better rates didn't exist, but because lenders had no reason to offer them. For the typical borrower, that's $3,343 a year. Across all mortgages originated since 2022: $65 billion lost annually.
Bankrate measured the gap by comparing 3.2 million 2025 mortgage originations against rates from our own marketplace — where lenders compete in real time for your business and our customers consistently receive rates lower than 99% of banks and credit unions.
Press contact: pr@bankrate.com
of borrowers paid above the competitive market rate
in excess mortgage costs per year for the typical borrower
lost annually across U.S. mortgages originated since 2022
Source: Bankrate analysis of 2025 HMDA originations.
Published June 24, 2026
Interactive Data
Overpayment Rate Tracker
Bankrate compared 3.2 million originations against available market rates. Hover any state to see how much borrowers there overpaid in 2025.
National avg
87%
of borrowers overpay
Highest overpayment
PA
90.2% overpayment rate
Lowest overpayment
IA
83.1% overpayment rate
Overpayment rate by state
2025 HMDA
Key Finding
Where overpayment hits hardest
Figure 7 — Overpayment rate and lost wealth (% of amount borrowed) by income group
Source: Bankrate analysis of 2025 HMDA originations
The wealth paradox: Overpayment rates peak at 90.3% for the $100k–$199k group, then fall — but lost wealth as a % of the loan rises monotonically to 25.1% for incomes over $500k. Larger loan balances compound the cost of not shopping for a better rate.
About the authors
Matt Fellowes
Chief Executive Officer, Bankrate
Matt Fellowes is the Chief Executive Officer of Bankrate. A veteran entrepreneur, his work and research have been cited across major media outlets and academic publications.
Jack O’Connor
Business Intelligence Analyst, Bankrate
Jack O’Connor is a Business Intelligence Analyst at Bankrate. He holds a B.B.A. from the University of Notre Dame.