New Bankrate data shows that Los Angeles, Miami and New York City have the highest mortgage overpayment costs among the nation’s 10 most populous metro areas. Borrowers who fail to secure the best available mortgage rate overpay by an average of $8,139 annually in Los Angeles, $6,358 in Miami and $6,012 in New York City, well above the $3,343 national average for the typical U.S. borrower.
Bankrate’s ongoing research on the Hidden Homeowner Tax finds systemic mortgage overpayment is holding back consumers by significantly and excessively adding to home buying and borrowing costs.
Bankrate’s team of consumer advocates compiled the research and additional information can be found at: http://www.bankrate.com/mortgages/mortgage-overpayment-americas-largest-metros
To determine where borrowers overpaid the most among the 10 largest U.S. metros, Bankrate analyzed 3.2 million HMDA mortgage loan originations from 2025 and compared them against binding, competitive offers available on Bankrate’s marketplace.
“This research shows just how high the stakes are for borrowers in the priciest housing markets,” said Jeff Ostrowski, Bankrate’s Housing Market Analyst. “Not shopping for the best deal can make a purchase that’s already expensive even more so.”
| Metro (Top 10) | Avg annual mortgage overpayment ($) | Avg lifetime mortgage overpayment ($) | Percent of borrowers overpaying (%) |
| 1. Los Angeles-Long Beach-Anaheim, CA | $8,139 | $149,073 | 83% |
| 2. Miami-Fort Lauderdale-West Palm Beach, FL | $6,358 | $118,045 | 88% |
| 3. New York-Newark-Jersey City, NY-NJ | $6,012 | $110,836 | 84% |
| 4. Washington-Arlington-Alexandria, DC-VA-MD-WV | $5,816 | $97,844 | 84% |
| 5. Dallas-Fort Worth-Arlington, TX | $5,320 | $84,754 | 88% |
| 6. Phoenix-Mesa-Chandler, AZ | $5,089 | $83,677 | 84% |
| 7. Atlanta-Sandy Springs-Roswell, GA | $4,851 | $80,244 | 86% |
| 8. Houston-Pasadena-The Woodlands, TX | $4,626 | $74,558 | 87% |
| 9. Chicago-Naperville-Elgin, IL-IN | $4,457 | $81,810 | 88% |
| 10. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | $4,425 | $80,517 | 86% |
| National average | $3,343 | $78,183 | 87% |
Overpaying is widespread across the 10 largest markets, with 83% to 88% of borrowers paying above what they should. Most metros fall slightly below the 87% national benchmark, while Houston meets it and Chicago surpasses it.
Philadelphia ranked last among the 10 largest metro areas nationwide for mortgage overpayments, however, borrowers in this area still overpay by an average of $4,425 every year.
“It’s not just the most expensive housing markets where overpayment looms as a threat to borrowers’ finances,” Ostrowski said. “Even in more affordable metro areas, buyers overpay significantly by not taking the time to find the best mortgage deal.”
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Tags: economy, home sales, Los angeles, miami, mortgage, nyc, real estate
