LendingTree Ranks Down Payment Affordability by State
CHARLOTTE, N.C., October 25, 2018 – LendingTree®, the nation’s leading online loan marketplace, today released its study on down payment affordability by state, ranking the states with the highest and lowest average down payment and down payment percentages for conventional 30-year, fixed-rate mortgages.
Key findings
- Average down payment percentages for conventional 30-year, fixed-rate purchase mortgage offers stayed about the same from the second quarter to the third quarter, rising 0.03 percentage points (18.02 percent to 18.05 percent).
- At the same time, average down payment amounts decreased nearly 10 percent in the third quarter, falling from $52,480 to $47,265.
- The average loan amount offered to potential homebuyers fell around $28,000 from $285,903 in Q2 to $257,749 in Q3.
“The average down payment on a U.S. home fell in the third quarter, though down payments as a percentage of purchase price remained about the same,” said Tendayi Kapfidze, Chief Economist at LendingTree. “Every quarter, LendingTree, the nation’s leading online loan marketplace, compares the average down payment percentages and amounts for conventional 30-year, fixed-rate purchase mortgage offers across the country. By finding these averages, we hope to give potential homebuyers an idea of what they can expect to put down when buying a home.”
Kapfidze breaks down how these findings impact those looking to buy a home, sell the one they’re currently in or stay where they are:
If you are buying a home
As LendingTree’s data shows, the average down payment for a home is decreasing and loan amounts fell. This is good news if you are looking to buy, as it means that you will need to save less money for a down payment. If high down payments have deterred you from buying a home in the past, now might be a good time to reconsider your options.
If you are selling a home
Recent data shows that home prices are not growing as fast as they have been over the past few years. As a result, if you are looking to sell your home, now might be a good time to do it. Waiting too long to sell could end up costing you, especially if this trend continues and home prices start to fall.
If you are staying in your current home
Even if you are not currently in the market to buy or sell a home, this data could still have impact on you, as down payments are a function of home prices. If home prices begin to fall, then you might want to reconsider refinancing or taking out a home equity loan. If you are planning on using your home as a retirement asset, then knowing its value will help you better plan for your future.
The lowest average down payments, by percentage
Alaska
Average down payment percentage: 15.41%
Average offered down payment: $36,476
Average offered loan amount: $236,643
West Virginia
Average down payment percentage: 15.44%
Average offered down payment: $21,415
Average offered loan amount: $138,696
Mississippi
Average down payment percentage: 15.78%
Average offered down payment: $22,964
Average offered loan amount: $145,523
The lowest average down payments, by amount
West Virginia
Average down payment percentage: 15.44%
Average offered down payment: $21,415
Average offered loan amount: $138,696
Arkansas
Average down payment percentage: 15.90%
Average offered down payment: $21,707
Average offered loan amount: $136,505
South Dakota
Average down payment percentage: 18.38%
Average offered down payment: $22,149
Average offered loan amount: $120,529
The highest average down payments, by percentage
California
Average down payment percentage: 21.44%
Average offered down payment: $97,809
Average offered loan amount: $454,146
Hawaii
Average down payment percentage: 21.32%
Average offered down payment: $69,923
Average offered loan amount: $328,046
Delaware
Average down payment percentage: 21.29%
Average offered down payment: $51,678
Average offered loan amount: $242,735
The highest average down payments, by amount
California:
Average down payment percentage: 22.44%
Average offered down payment: $97,809
Average offered loan amount: $456,146
Washington, D.C.
Average down payment percentage: 19.84%
Average offered down payment: $91,397
Average offered loan amount: $460,685
New York
Average down payment percentage: 19.85%
Average offered down payment: $90,318
Average offered loan amount: $454,968
To view the full report, visit https://www.lendingtree.com/home/mortgage/down-payment-affordability-by-state/.
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.