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LendingTree Mortgage Offers Report — October 2019

  • October’s mortgage offers for borrowers with the best credit profiles had an average APR of 3.83% for conforming 30-year, fixed-rate purchase loans. The average APR offered to these borrowers on refinance loans in October is lower, at 3.80%. We consider people with the best credit profiles to have credit scores of 800 or above. People with credit scores at or above 800 receive 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 (LTV) ratio, income and property type.
  • For all consumers, regardless of credit score, the average APR for conforming 30-year, fixed-rate purchase loans offered on LendingTree’s platform was 4.16% in October, down 1 basis point from September. The loan note rate of 4.04% was down 2 basis points from September. We emphasize the APR because 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 3.95%, versus 4.40% for consumers with scores of 680 to 719 for purchase loans in October. The APR spread of 45 basis points is up slightly from 42 basis points in September. For the average purchase loan amount of $253,186, the spread represents $24,004 in additional costs for borrowers over the span of 30 years. The additional costs result from higher interest rates, higher fees or a combination of the two.
  • For all consumers, the average APR for conforming 30-year, fixed-rate refinance loans was 4.09% in October, down 2 basis points from September. The APR for refinance loans offered to people with credit scores above 760 was 3.93%, and the APR was 4.27% for refinance offers to people with scores between 680 and 719. This 34-point spread between the two credit score brackets amounts to $18,463 in extra costs over the life of the loan for borrowers with lower credit scores, given an average refinance loan size of $259,578.
  • Average proposed purchase down payments fell slightly to $69,405 in October, down from $71,124 in September.
  • Purchase APR by credit score range

Purchase mortgage offers by credit score

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

Refinance mortgage offers by credit score

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 included the average quoted APR by credit score, together with the average down payment and other metrics described below. We stratified by credit score, so borrowers have added information on how their credit profile affects their loan prospects. The report covered conforming, 30-year 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 is one of the main impediments to entering the homebuying market.
  • Loan amount: The average loan amount borrowers are offered.
  • LTV: Actual loan-to-value ratio offered to borrowers on our platform.
  • Lifetime interest paid: This is the total cost a borrower incurs for the loan, inclusive of fees.
 

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