N.J. is one of a few states where homebuyers can save six figures by shopping for a mortgage

Shopping around for a mortgage can save homeowners a lot of money in the long run, especially in New Jersey.

An analysis by the online loan marketplace LendingTree found that New Jersey borrowers who compare offers by several lenders could save an average of about $105,000 over the life of the traditional 30-year mortgage. That’s about $3,500 per year.

The Garden State ranks No. 4 among states for possible savings for borrowers who shop around to get the lowest mortgage interest rate. New Jerseyans could save more than the national average of about $80,000 over the life of a 30-year loan.

New Jersey is one of seven states in which borrowers stand to save an average of more than $100,000.

Borrowers in Pennsylvania who shop around for mortgages could save roughly $72,000 over 30 years, or about $2,400 annually.

“The amount that you can save on your mortgage simply by shopping around is staggering,” Matt Schulz, LendingTree’s chief consumer finance analyst, said in a statement. “It is one of the best financial decisions that you can make.”

Last year, LendingTree found that more than half of homebuyers with a mortgage did not shop around.

In LendingTree’s report published this month, analysts looked at data from more than 80,000 users who got two or more offers for 30-year, fixed-rate mortgages from lenders between Jan. 1 and April 30 this year.

LendingTree measured possible savings by calculating the gap between the averages of the lowest and highest Annual Percentage Rates that lenders offered to borrowers. These rates include interest rates, points, broker fees, and other charges.

In 20 states, including New Jersey and Pennsylvania, the difference between the average highest and lowest rates was more than 1.00 basis points.

Having a good credit score can help borrowers get lower interest rates.

“There’s little in life that is more expensive than having crummy credit,” Schulz said.

LendingTree advises that in addition to improving credit, homebuyers should compare offers from not just big banks but also small banks, credit unions, independent mortgage companies, and other lenders.

To save money over the life of their mortgages, homebuyers also can consider shorter loan terms if they can afford higher monthly payments.

The average interest rate for the popular 30-year, fixed-rate loan was 6.85% as of last week, according to the government-backed mortgage buyer Freddie Mac.

New Jersey’s No. 4 ranking for possible mortgage savings among states puts it just below other high-cost locations: California, Washington, and Hawaii. Higher home prices mean larger dollar amounts that can possibly be saved with lower interest rates.

Californians can save about $118,000 over 30 years.

But in the state with the lowest average savings, Louisiana, borrowers still stood to save an average of more than $44,000.