4 Ways Choosing the Right Bank Can Save You Money If You’re Buying a Home in 2025
Written by
Martin Dasko
Edited by
Laura Bogart
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Mortgage rates are forecast to stay around the average monthly rate of 6.3% in 2025, while home price appreciation is targeted to reach a median of 3.7% in 2025, according to the Realtor.com 2025 Housing Forecast. It appears that housing affordability may not improve in 2025, with higher interest rates and elevated real estate prices increasing monthly living expenses.
If you’re looking to buy a home this year, you’ll want to take the time to shop around for the best rate possible to bring down your housing costs. However, while interest rates are critical, there’s more to homebuying if you want to save money. Choosing the right bank, for example, is a key way to save money.
Here are four ways that choosing the right bank can save you money if you’re buying a home in 2025.
Also see four banking habits you should adopt to grow your wealth, according to Suze Orman.
The Right Bank Can Help You Track Progress and Stay Motivated
The right bank can provide you with good technology that can help you track your progress.
“You need to look for a bank that offers good technology, like a mobile app or web app, to track your mortgage progress easily,” said Yunita Anwar, Ph.D., an assistant professor of accounting at Shenandoah University School of Business. “With this app/dashboard, when you make extra payments, you can easily see in real-time how those extra payments reduce your total interest over the mortgage period and shorten your mortgage.”
This feature could help you save money on your mortgage payments. When you see that you’re making progress on your mortgage balance, you could become motivated to increase the payments to speed up the process of paying down the loan.
This means you’ll want to look into the additional perks offered by your loan provider to ensure that they offer tools and resources that will help you save some money in the long run.
Reviewing the Lender’s Payment Programs Can Help You Save
You’ll also want to examine what your bank’s fees are when it comes to a mortgage loan. Choosing the right bank with the best fees could save you money.
“Closing costs can really add up, so I recommend carefully reviewing fees like origination, application and appraisal charges,” said Shirley Mueller, real estate expert and founder of VA Loans Texas. “Some lenders may even offer lower fees or waive certain costs for first-time homebuyers, which can make a huge difference in your upfront costs.”
Paying attention to the fee structures at your lending bank can save you money if you’re buying a home in 2025. “All banks have origination, application and underwriting fees, among others, which can be very different from bank to bank. You’re likely to see any possible savings not as readily apparent when you go looking only at interest rates,” said Alexei Morgado, a Realtor and founder of Lexawise.
Sometimes, a lender may have a lower interest rate and then charge a lot for closing costs. These expenses could easily wipe out savings from a better rate, so you want to take some time to review this structure so that you don’t spend more money in the long run on your housing costs.
Customer Service Can Help You Find Ways To Save
Customer service is another key factor in helping you save money and feel comfortable as a homebuyer. For example, you may find out through the bank’s customer service department that there are down payment assistance programs available or special offers for first-time buyers. These resources could help you save money upfront or make homeownership more accessible.
“In my experience, working with a lender who’s responsive and communicative can make the entire homebuying process much smoother,” Mueller said. “I suggest considering things like how easy it is to get in touch with them, the availability of online resources and their reputation for customer satisfaction.”
Educational Resources Can Help You Make Informed Decisions
You want to find a bank offering educational tools and resources to help you better manage your money during the homebuying process. While it’s important to save money on banking costs when you can, you also want to utilize resources that can help you improve your overall financial picture, especially if you’re planning on purchasing a home in 2025.
“I always encourage my clients to ask about the bank’s commitment to customer education,” Morgado said. “A lender who offers resources and guidance throughout the process can help you make smarter decisions and avoid costly mistakes.”
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