LendingTree Releases Monthly Mortgage Offer Report for November
- November's best offers for borrowers with the best profiles had an average APR of 3.75% for conforming 30-year fixed purchase loans, unchanged from October. Refinance loan offers were down 1 bps to 3.69%. Mortgage rates vary dependent upon parameters including credit score, loan-to-value, income and property type.
- For the average borrower, purchase APRs for conforming 30-yr fixed loans offered on
LendingTree'splatform were down 1 bps to 4.30%, the lowest since November 2016. In contrast, the loan note rate of 4.18% was unchanged from October when it reached the highest since July. We prefer to use the APR as lenders often make changes to other fees in response to changing interest rates.
- Consumers with the highest credit scores (760+) saw offered APRs of 4.16% in November, vs 4.43% for consumers with scores of 680-719. The APR spread of 27 bps between these score ranges was 5 bps wider than in October and the widest since
July 2016. The spread represents nearly $13,400in additional costs for borrowers with lower credit scores over 30-years for the average purchase loan amount of $233,127. The additional costs are due to higher interest rates, larger fees or a combination of the two.
- Refinance APRs for conforming 30-yr fixed loans were down 2 bps to 4.24%. The credit score bracket spread widened to 19 from 16 bps, amounting to
$9,500in extra costs over the life of the loan for lower credit score borrowers given an average refinance loan of $235,973.
- Average proposed purchase down payments have been rising for 8 months and reached
"Our report shows that the benefits of improving your credit score go beyond lower interest rates and include access to higher loans amounts and higher LTVs," said Tendayi Kapfidze,
Kapfidze added, "We expect rate volatility to increase throughout the month of December. The passage of the
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.
To view the original report, visit: https://www.lendingtree.com/home/lendingtree-mortgage-offers-report-november-2017/.
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