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LendingTree Releases Monthly Mortgage Offers Report for January

LendingTree's Chief Economist analyzes January's mortgage offers

CHARLOTTE, N.C., Feb. 12, 2019 /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.

  • January's best mortgage offers for borrowers with the best profiles had an average APR of 4.19% for conforming 30-year, fixed-rate purchase loans, down from 4.35% in December 2018. The APR on refinance loan offers also decreased from 4.34% in November to 4.14%. We consider people with the best credit profiles to be those in the 95th percentile of borrowers 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 ratio, income and property type.
  • For the average borrower, the purchase APR for conforming 30-year, fixed-rate purchase loans offered on LendingTree's platform was 4.98%, down 19 basis points from December. The loan note rate of 4.86% was also down 19 basis points from December. We prefer to emphasize the APR as lenders often make changes to other fees in response to changing interest rates.
  • Consumers with excellent credit scores (760+, representing the 65th percentile of borrowers) received an average APR of 4.79%, versus 5.16% for consumers with scores of 680 to 719. The APR spread of 65 basis points between these score ranges is higher than it was in December. For the average purchase loan amount of $227,300, the spread represents over $18,000 in additional costs for borrowers with lower credit scores in the span of 30 years. The additional costs result from higher interest rates, larger fees or a combination of the two.
  • For the average borrower, the APR for conforming 30-year, fixed-rate refinance loans decreased 15 basis points from December to 4.94%. At 4.76% and 5.07%, respectively, the spread between credit score brackets (760+ and 680-719) was 31 basis points. That amounts to over $16,500 in extra costs over the life of the loan for borrowers with lower credit scores, given an average refinance loan of $223,917.
  • Average proposed purchase down payments fell to $53,348, a decline of nearly $2,000.

 

Purchase APR by Credit Score Range

 

Purchase Mortgage Offers by Credit Score

FICO Range

Average APR

Average Down Payment

Average Loan Amount

Average LTV

Lifetime Interest Paid*

All Loans

4.98%

$53,348

$227,300

83%

$210,971

760+

4.79%

$72,193

$250,858

80%

$201,529

720-759

4.86%

$48,135

$225,691

84%

$204,996

680-719

5.16%

$34,573

$209,630

87%

$220,007

640-679

5.68%

$62,787

$200,937

76%

$246,593

620-639

5.75%

$60,249

$190,932

77%

$250,226


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

 

Refinance Mortgage Offers by Credit Score

FICO Range

Average APR

Average Down Payment

Average Loan Amount

Average LTV

Lifetime Interest Paid*

All Loans

4.94%

$348.12

$243,553.06

62%

$223,917

760+

4.76%

$593.84

$254,502.10

60%

$214,351

720-759

4.82%

$390.28

$247,710.41

64%

$217,529

680-719

5.07%

$196.82

$236,939.88

65%

$230,885

640-679

5.29%

$0.00

$224,892.10

59%

$242,789

620-639

5.47%

$0.00

$216,913.08

59%

$252,630


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

 

To view the Mortgage Offers Report, visit: https://www.lendingtree.com/home/mortgage-offers-report-january-2019/.

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

LendingTree logo (PRNewsfoto/LendingTree)
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