LendingTree Releases Monthly Mortgage Offers Report for July
CHARLOTTE, N.C., Aug. 8, 2018 /PRNewswire/ -- LendingTree®, the nation's leading online loan marketplace, today released its monthly Mortgage Offers Report, which analyzes data from actual loan terms offered to borrowers on LendingTree.com by lenders on LendingTree's network. The purpose of the report is to empower consumers by providing additional information on how their credit profile affects their loan prospects.
-- July's best offers for borrowers with the best profiles (the 95th
percentile of borrowers) had an average APR of 4.31% for conforming
30-year fixed purchase loans, down from 4.34% in June. Refinance loan
offers were down 2 bps, to 4.35%. We consider people with the best
credit profiles those who received the best mortgage offers through the
LendingTree marketplace, which allows users to compare offers from
multiple mortgage lenders.
-- Mortgage rates vary depending upon parameters including credit score,
loan-to-value, income and property type.
-- For the average borrower, purchase APRs for conforming 30-year fixed
loans offered on LendingTree's platform were down 1 bp, to 4.99%. The
loan note rate of 4.88% is the lowest since April. We prefer to
emphasize the APR as lenders often make changes to other fees in
response to changing interest rates.
-- Consumers with the highest credit scores (760+, representing the 65th
percentile of borrowers) were offered APRs of 4.84%, versus 5.13% for
consumers with scores of 680-719. The APR spread of 29 bps between these
score ranges was up 2 bps from June. The spread represents almost
$15,000 in additional costs for borrowers with lower credit scores over
30 years for the average purchase loan amount of $232,054. The
additional costs are due to higher interest rates, larger fees or a
combination of the two.
-- Refinance APRs for conforming 30-year fixed loans were down 2 bps, to
4.98% for the average borrower. The credit score bracket spread widened
2 bps, to 22 bps, amounting to just over $11,500 in extra costs over the
life of the loan for lower credit score borrowers given an average
refinance loan of $238,018.
-- Average proposed purchase down payments were down about $1,000, to
$58,191.
Purchase Mortgage Offers by Credit Score
Purchase
--------
FICO
Range Average APR Average Down Payment Average Loan Amount Average LTV Lifetime Interest Paid*
----- ----------- -------------------- ------------------- ----------- ----------------------
All
Loans 4.99% $58,191 $232,054 82% $215,808
----- ---- ------- -------- --- --------
760+ 4.84% $75,117 $252,185 78% $208,154
--- ---- ------- -------- --- --------
720-759 4.89% $54,409 $232,766 83% $210,727
------- ---- ------- -------- --- --------
680-719 5.13% $39,239 $215,726 86% $222,882
------- ---- ------- -------- --- --------
640-679 5.50% $61,165 $198,748 75% $242,301
------- ---- ------- -------- --- --------
620-639 5.61% $58,170 $194,733 76% $248,135
------- ---- ------- -------- --- --------
*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.
Refinance Mortgage Offers by Credit Score
Refinance
---------
FICO
Range Average APR Average Down Payment Average Loan Amount Average LTV Lifetime Interest Paid*
----- ----------- -------------------- ------------------- ----------- ----------------------
All
Loans 4.98% $0 $238,018 62% $221,064
----- ---- --- -------- --- --------
760+ 4.85% $0 $244,953 59% $214,389
--- ---- --- -------- --- --------
720-759 4.91% $0 $242,762 64% $217,147
------- ---- --- -------- --- --------
680-719 5.07% $0 $234,092 64% $225,901
------- ---- --- -------- --- --------
640-679 5.25% $0 $219,823 59% $235,005
------- ---- --- -------- --- --------
620-639 5.39% $0 $211,655 59% $242,742
------- ---- --- -------- --- --------
*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.
"Our report demonstrates how a credit score can impact a borrower in very tangible terms," said Tendayi Kapfidze, LendingTree's Chief Economist and report author. "As much as people obsess over credit scores, many think of its importance in the binary "approve/decline" paradigm. Few borrowers actually know how their credit score impacts the cost of financial products, and we hope this report increases consumer education."
To view the original report, visit https://www.lendingtree.com/home/mortgage-offers-report-july-2018/.
About the Report
The LendingTree Mortgage Offers Report contains data from actual loan terms offered to borrowers on LendingTree.com by lenders. We believe it is an important addition to standard industry surveys and reports on mortgage rates. Most quoted industry rates are for a hypothetical borrower with prime credit who makes a 20% down payment. Most borrowers do not fit this profile. Our report includes the average quoted APR by credit score, together with the average down payment and other metrics described below. We stratify by credit score, so borrowers have added information on how their credit profile affects their loan prospects. The report covers conforming 30-yr fixed loans for both purchase and refinance.
-- APR: Actual APR offers to borrowers on our platform
-- Down Payment: Though analogous to the LTV, we find that borrowers
identify more closely with the down payment. Academic studies have also
found that the down payment is the primary concern for homebuyers and
one of the main impediments to entering the homebuying market.
-- Loan Amount: The average loan amount borrowers are offered
-- LTV: Actual LTV offered to borrowers on our platform
-- Lifetime Interest Paid: This is the total cost a borrower incurs for the
loan, inclusive of fees.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.greuling@lendingtree.com
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SOURCE LendingTree
