LendingTree Releases Monthly Mortgage Offer Report for September
CHARLOTTE, N.C., October 3, 2018 – 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.
- September’s best offers for borrowers with the best profiles (the 95th percentile of borrowers) had an average APR of 4.39% for conforming 30-year fixed purchase loans, up from 4.32% in August. Refinance loan offers were up 5 basis points (bps), to 4.40%. We consider people with the best credit profiles to be those 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, purchase APRs for conforming 30-year fixed-rate loans offered on LendingTree’s platform were 5.09%. Up 10 bps from August. The loan note rate of 4.96% is the highest rate of the year. 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) received APRs of 4.95%, versus 5.25% for consumers with scores of 680 to 719. The APR spread of 30 bps between these score ranges increased 1 bp from August. For the average purchase loan amount of $231,175, the spread represents over $15,000 in additional costs for borrowers with lower credit scores over 30 years. The additional costs are due to higher interest rates, larger fees or a combination of the two.
- For the average borrower, refinance APRs for conforming 30-year fixed loans were up 11 bps from August to 5.09%. The credit score bracket spread widened by 1 bp, to 24 bps, amounting to nearly $13,000 in extra costs over the life of the loan for borrowers with lower credit scores, given an average refinance loan of $239,623.
- Average proposed purchase down payments were down about $250, to $56,786.
Purchase Mortgage Offers by Credit Score
| PURCHASE | |||||
| FICO Range | Average APR | Average Down Payment | Average Loan Amount | Average LTV | Lifetime Interest Paid* |
| All Loans | 5.09% | 56768 | 231175 | 81% | $220,207 |
| 760+ | 4.95% | 74773 | 252518 | 78% | $212,951 |
| 720-759 | 4.99% | 52545 | 230346 | 83% | $215,244 |
| 680-719 | 5.25% | 34263 | 212269 | 86% | $228,293 |
| 640-679 | 5.58% | 63714 | 198897 | 75% | $245,729 |
| 620-639 | 5.68% | 60031 | 194342 | 76% | $250,553 |
*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.
Refinance Mortgage Offers by Credit Score
| REFINANCE | |||||
| FICO Range | Average APR | Average Down Payment | Average Loan Amount | Average LTV | Lifetime Interest Paid* |
| All Loans | 5.09% | 259 | 239623 | 62% | $228,296 |
| 760+ | 4.96% | 396 | 247254 | 59% | $221,209 |
| 720-759 | 5.01% | 280 | 245309 | 64% | $223,773 |
| 680-719 | 5.20% | 199 | 235352 | 64% | $234,026 |
| 640-679 | 5.36% | 10 | 217957 | 59% | $242,616 |
| 620-639 | 5.52% | 0 | 210693 | 60% | $251,501 |
*Lifetime interest paid is calculated based on the overall average loan amount to enable comparison.
To view the original report, visit https://www.lendingtree.com/home/mortgage-offers-report-september-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.