LendingTree Releases Monthly Mortgage Offer Report for June

July 11, 2018 at 12:00 PM EDT
LendingTree's Chief Economist analyzes June's mortgage offers

CHARLOTTE, N.C., July 11, 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.

  • June's best offers for borrowers with the best profiles (the 95th percentile of borrowers) had an average APR of 4.34% for conforming 30-year fixed purchase loans, down from 4.36% in May. Refinance loan offers were up 1 bp, to 4.37%. We consider people with the best credit profiles to be those who received the best mortgage offers through the LendingTree platform.
  • 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 up 8 bps, to 5.00%. The loan note rate of 4.89% is the highest since March 2016 and was unchanged from May. 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) saw offered APRs of 4.86% in March, versus 5.14% for consumers with scores of 680-719. The APR spread of 27 bps between these score ranges was down 2 bps from May. The spread represents almost $14,000 in additional costs for borrowers with lower credit scores over 30 years for the average purchase loan amount of $231,606. 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 up 11 bps, to 5.00% for the average borrower. The credit score bracket spread narrowed 4 bps, to 20 bps, amounting to nearly $11,000 in extra costs over the life of the loan for lower credit score borrowers given an average refinance loan of $236,706.
  • Average proposed purchase down payments were down about $1,000, to $59,205.

Purchase APR by Credit Score Range

Purchase Mortgage Offers by Credit Score

Purchase

FICO
Range

Average
APR

Average
Down Payment

Average
Loan Amount

Average
LTV

Lifetime
Interest Paid*

All Loans

5.00%

$59,205

$231,606

81%

$216,020

760+

4.86%

$77,492

$252,408

78%

$209,076

720-759

4.91%

$55,493

$229,689

83%

$211,480

680-719

5.14%

$38,391

$216,076

86%

$222,951

640-679

5.47%

$61,468

$202,217

76%

$240,147

620-639

5.56%

$54,641

$190,463

76%

$244,780

*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.

Refinance Mortgage Offers by Credit Score

Refnance

FICO
Range

Average
APR

Average
Down Payment

Average
Loan Amount

Average
LTV

Lifetime
Interest Paid*

All Loans

5.00%

$2

$236,706

62%

$220,643

760+

4.88%

$0

$244,331

59%

$214,408

720-759

4.93%

$2

$239,569

64%

$217,183

680-719

5.08%

$0

$233,195

64%

$225,072

640-679

5.25%

$14

$219,313

59%

$233,595

620-639

5.39%

$0

$213,692

59%

$241,368

*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.

 

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 $26,690 in interest on a $300,000 loan by comparison shopping for the best mortgage rates last week. This week's Mortgage Rate Competition Index was 0.58 for purchase mortgages, up 0.01 from the previous week.

"Our monthly report continues to illustrate the impact a credit score can have on the cost of financial products," said Tendayi Kapfidze, LendingTree's Chief Economist and report author. "Homebuyers' credit scores can allow them to be more competitive in a marketplace with limited inventory and heightened competition."

To view the original report, visit https://www.lendingtree.com/home/mortgage-offers-report-june-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 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

LendingTree Logo. (PRNewsFoto/LendingTree) (PRNewsfoto/LendingTree)

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SOURCE LendingTree