CHARLOTTE, N.C., July 2, 2014 /PRNewswire/ -- LendingTree, the nation's leading online source for competitive loan offers, has launched an ongoing study to track the difference between interest rates offered to borrowers for the same loan. In May 2014, borrowers who received multiple 30-year fixed-rate loan offers experienced an average interest rate difference of 36.5 basis points or .365%. Because mortgage interest rates offered to borrowers can vary greatly from lender to lender, sometimes by over one percentage point, there are opportunities to substantially save money by shopping and comparing loan offers to find the best deal.

http://photos.prnewswire.com/prnvar/20140702/124140

According to LendingTree, the average loan amount for prime borrowers in search of a 30-year fixed rate home loan was $223,692. Based on the average loan amount, the 36.5 basis point variance in offered rates recorded in May translates into a potential savings amount of $47.49 per month, $575.64 per year or by $17,269 over the life of the loan just by comparison shopping and choosing the lowest offered interest rate.

"Interest rates offered to borrowers can sometimes be influenced by lender capacity as well as market demand," said Doug Lebda, founder and CEO of LendingTree. "Some lenders may cut their profit margin to attract business, which could mean a lower offer for borrowers. Comparison shopping for loans can give borrowers confidence that they are getting a good deal by evaluating and comparing options. Regardless of which lender you ultimately end up working with, borrowers should read lender ratings and reviews, ask questions and work with the lender they are most comfortable with. "

By way of example, an actual LendingTree consumer who sought an estimated loan amount of $220,000 in May 2014 received offers from four lenders on the LendingTree network for a 30-year fixed-rate mortgage. The lowest offered interest rate was 4.125% and the highest offered interest rate was 4.625%, both for the same exact loan with all other factors remaining equal. In this scenario, the total rate variance is .5%, or 50 basis points. This consumer has the potential to save $64.88 per month, about $780 per year and over $23,000 in interest over the life of the loan by choosing the lowest offer.

LendingTree's infograph shows the changes in the average monthly rate variance between offers. In November of last year, the rate variance peaked at 41 basis points, or .41%. In the past few months, the average rate variance has increased slightly, growing from 33 basis points in March 2014 to 36.5 basis points in May 2014.

About LendingTree, LLC
LendingTree, LLC is the nation's leading online source for competitive home loan offers, empowering consumers during the mortgage, refinance or auto loan process. LendingTree provides an online marketplace which connects consumers with multiple lenders that compete for their business, as well as an array of online tools and information to help consumers find the best loan. Since inception, LendingTree has facilitated more than 30 million loan requests and $214 billion in closed loan transactions. LendingTree provides access to lenders offering mortgages and refinance loans, home equity loans/lines of credit, and more. LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ: TREE). For more information go to www.lendingtree.com, dial 800-555-TREE, join our Facebook page and/or follow us on Twitter @LendingTree.

MEDIA CONTACT:
Megan Greuling
(704) 943-8208
Megan.Greuling@tree.com

http://photos.prnewswire.com/prnvar/20110518/MM04455LOGO

Photo - http://photos.prnewswire.com/prnh/20140702/124140
Logo - http://photos.prnewswire.com/prnh/20110518/MM04455LOGO

SOURCE LendingTree