LendingTree Releases Monthly Mortgage Offer Report for August
CHARLOTTE, N.C., Sept. 5, 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.
-- August's best offers for borrowers with the best profiles (the 95th
percentile of borrowers) had an average APR of 4.32% for conforming
30-year fixed purchase loans, up from 4.31% in July. Refinance loan
offers were unchanged at 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 was 4.99%, unchanged from the
previous month. The loan note rate of 4.87% 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. At an average purchase loan amount of
$230,645, the APR spread of 29 bps between these score ranges represents
almost $15,000 in additional costs over 30 years for borrowers with
lower credit scores. 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 unchanged at
4.98% for the average borrower. The credit score bracket spread widened
1 bps, to 23 bps, amounting to just over $12,000 in extra costs over the
life of the loan for lower-credit-score borrowers, given an average
refinance loan of $239,517.
-- Average proposed purchase down payments were down about $1,000, to
$56,933.
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% $56,933 $230,645 81% $214,477
----- ---- ------- -------- --- --------
760+ 4.84% $73,882 $249,295 78% $207,150
--- ---- ------- -------- --- --------
720-759 4.89% $53,922 $231,975 82% $209,329
------- ---- ------- -------- --- --------
680-719 5.13% $36,232 $214,027 86% $221,622
------- ---- ------- -------- --- --------
640-679 5.51% $62,171 $202,806 75% $241,176
------- ---- ------- -------- --- --------
620-639 5.62% $54,300 $186,817 76% $246,913
------- ---- ------- -------- --- --------
*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% $186 $239,517 62% $222,066
--------- ---- ---- -------- --- --------
760+ 4.84% $295 $246,389 59% $215,070
--- ---- ---- -------- --- --------
720-759 4.90% $268 $243,248 64% $217,859
------- ---- ---- -------- --- --------
680-719 5.07% $53 $236,471 64% $227,128
------- ---- --- -------- --- --------
640-679 5.25% $9 $221,106 60% $236,529
------- ---- --- -------- --- --------
620-639 5.39% $0 $219,317 59% $243,910
------- ---- --- -------- --- --------
*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.
To view the original report, visit https://www.lendingtree.com/home/mortgage-offers-report-august-2018/.
Each week LendingTree also releases its Mortgage Rate Competition Index and Mortgage Savings Tracker. The LendingTree Mortgage Rate Competition Index is a new measure of the dispersion in mortgage pricing. Built on top of the Mortgage Rate Competition Index, the Mortgage Savings Tracker brings transparency to mortgage shopping by highlighting the significant savings that are available to potential borrowers for both purchase mortgages and refinancing. This week's report found that homebuyers could have seen median lifetime savings of $30,329 in interest on a $300,000 loan by comparison shopping for the best mortgage rates last week.
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
