CHARLOTTE, N.C., Jan. 8,
2018 /PRNewswire/
-- LendingTreeĀ®, 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.
- December's best offers for borrowers with the best profiles had
an average APR of 3.80% for conforming 30-year fixed purchase
loans, up from 3.75% in November. Refinance loan offers were up 1
bps to 3.70%. 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's platform were up 12 bps to
4.42%, the highest since July 2016.
The loan note rate hit the highest since March 2016 at 4.32% and was up 14 bps from
November. 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+) saw offered
APRs of 4.26% in December, vs 4.56% for consumers with scores of
680-719. The APR spread of 30 bps between these score ranges was 3
bps wider than in November and the widest since this data series
began in April 2016. The spread
represents nearly $15,000 in
additional costs for borrowers with lower credit scores over
30-years for the average purchase loan amount of $233,586. 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 up 7 bps
to 4.31%. The credit score bracket spread widened to 24 from 20
bps, amounting to $12,000 in extra
costs over the life of the loan for lower credit score borrowers
given an average refinance loan of $241,973.
- Average proposed purchase down payments have been rising for 8
months and reached $63,740.
"Interest rates for 2017 were on average lower than had been
expected at the start of the year but they did end the year on an
upswing," said Tendayi Kapfidze, LendingTree's Chief Economist and
report author. "Our report shows that the benefits of improving
your credit score are even greater when interest rates are rising,
as lenders often pass on higher costs to borrowers with poorer
credit first."
Kapfidze added, "As a borrower, there is nothing you can do
about the general level of interest rates in the economy. Since we
began tracking this data in April
2016, the rate for the average borrower has risen by 50 bps
from 3.92% to 4.42%. However, borrowers with 760+ credit scores saw
an increase of just 40 bps, while those from 620 to 639 had their
rates increase by 80 bps, twice as much. If you are considering
purchasing a home this year, or refinancing, take some action to
shore up your credit score and improve the rates lenders will offer
you. It's also important to comparison shop for lenders that are
offering more competitive rates to borrowers."
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-december-2017/.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree
provides an online marketplace which connects consumers with
multiple lenders that compete for their business, as well as an
array of online tools and information to help consumers find the
best loan. Since inception, LendingTree has facilitated more than
65 million loan requests. LendingTree provides free monthly credit
scores through My LendingTree and access to its network of over 500
lenders offering home loans, personal loans, credit cards, student
loans, business loans, home equity loans/lines of credit, auto
loans and more. 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