LendingTree Releases Monthly Mortgage Offer Report for October
- October's best loan offers for borrowers with the best profiles had an average APR of 3.75% for purchase and 3.70% for refinance, on conforming 30-year loans. 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 3 bps month over month, to 4.31%, the lowest since November 2016. In contrast, the loan note rate of 4.18% was up 7 bps to the highest since July. The report references APR as opposed to interest rate, as lenders often make changes to other fees in response to the interest rate environment.
- Consumers with the highest credit scores (760+) saw an average APR offer of 4.18% vs 4.44% for consumers with scores of 680-719. The APR spread of 22 bps between these score ranges was 1 bps lower than in September. The spread represents nearly
$12,600in additional costs for borrowers with lower credit scores over 30-years for the average purchase loan amount of $228,730. 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 up 10 bps to 4.26%. The credit score bracket spread widened to 16bps from 15 bps, nearly
$7,500in extra costs over the life of the loan for lower credit score borrowers given an average refinance loan of $235,844.
- The average proposed down payment for purchase mortgages have been rising for 7 months and reached
- Average monthly payments were little changed at just over
$1,100for both purchase and refinance. The credit score bucket spread was $241for purchase and just $77for refinance.
*Some borrowers make a down payment when refinancing to bring their LTV to a targeted value.
"Our report illustrates the impact a credit score can have on a borrower in very tangible terms," said Tendayi Kapfidze,
Kapfidze added, "As we move closer to December, there are a few catalysts for interest rate risk. First, the
About the Report
The LendingTree Mortgage Offers Report contains data from actual loan terms offered to borrowers on LendingTree.com by lenders.
- Loan Distribution: The share of loans offered by credit score bucket
- 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.
- LTV: Actual LTV offered to borrowers on our platform
- Loan Amount: The average loan amount borrowers are offered
- Monthly Payment: Another key figure that borrowers have top of mind when shopping for loans
To view original report visit: https://www.lendingtree.com/home/lendingtree-mortgage-offers-report-october-2017/
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