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
Overpayment Rate Tracker
Bankrate compared 3.2 million originations against available market rates. See how your area compares.
87% of American borrowers paid above the competitive rate. Enter your ZIP to see where your market stands among 21,340 markets nationwide.
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.