Maintaining a good credit score is highlighted in the latest offers report from lenders network LendingTree
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Maintaining a good credit score is highlighted in the latest Mortgage Offers Report from home loan lending network LendingTree.
It shows that the borrowers with the best credit profiles were able to obtain rates of 3.70% for refinancing and 3.75% for purchase in October based on a 30-year conforming loan.
For those with credit scores of 760 and above the average APR offered was 4.18% compared to a 4.44% rate for those with scores between 680 and 719.
The added costs of interest and other fees amount to an average $12,600 over 30 years for an average purchase loan of $228,730. The extra cost for a refinance loan, where the best profiles meant an average offer of 4.26%, was $7,500 for those with lower scores.
"Our report illustrates the impact a credit score can have on a borrower in very tangible terms," said Tendayi Kapfidze, LendingTree's Chief Economist and report author. "As much as people obsess over credit scores, many think of its importance in the binary "approve/decline" paradigm. Few borrowers could actually tell you how the credit score impacts the cost of financial products.”
The average downpayment for loans secured with lenders on the LendingTree platform was $59,680 in October and the average monthly mortgage payment was just over $1,100 for both purchase and refinance loans.
For next month, Kapfidze sees some interest rate risk.
"First, the FOMC is almost certain to raise the benchmark interest rate on December 13. Secondly, progress or lack of progress on the tax plan could create volatility. And lastly, Congress must pass a spending bill or short-term continuing resolution by December 8th or we run the risk of a government shutdown, which could push interest rates up further," he said.
It shows that the borrowers with the best credit profiles were able to obtain rates of 3.70% for refinancing and 3.75% for purchase in October based on a 30-year conforming loan.
For those with credit scores of 760 and above the average APR offered was 4.18% compared to a 4.44% rate for those with scores between 680 and 719.
The added costs of interest and other fees amount to an average $12,600 over 30 years for an average purchase loan of $228,730. The extra cost for a refinance loan, where the best profiles meant an average offer of 4.26%, was $7,500 for those with lower scores.
"Our report illustrates the impact a credit score can have on a borrower in very tangible terms," said Tendayi Kapfidze, LendingTree's Chief Economist and report author. "As much as people obsess over credit scores, many think of its importance in the binary "approve/decline" paradigm. Few borrowers could actually tell you how the credit score impacts the cost of financial products.”
The average downpayment for loans secured with lenders on the LendingTree platform was $59,680 in October and the average monthly mortgage payment was just over $1,100 for both purchase and refinance loans.
For next month, Kapfidze sees some interest rate risk.
"First, the FOMC is almost certain to raise the benchmark interest rate on December 13. Secondly, progress or lack of progress on the tax plan could create volatility. And lastly, Congress must pass a spending bill or short-term continuing resolution by December 8th or we run the risk of a government shutdown, which could push interest rates up further," he said.
