Average American putting less money down when buying a home

Average American putting less money down when buying a home

California down payment percentage remains highest

October 26, 2018
 
Alcynna Lloyd
The average down payment on a U.S. home fell in the third quarter, according the latest data collected from digital loan sourcing site LendingTree.
Each quarter, LendingTree compares average down payment percentages and conventional 30-year, fixed-rate purchase mortgage offer amounts across the country. They found that the average down payment decreased nearly 10% in the third quarter — falling from $52,480 to $47,265.
According to the report, despite a decrease in payment amount, down payments as a percentage of purchase price remained relatively the same.
The report indicates that the average down payment percentages for conventional 30-year, fixed-rate purchase mortgage offers rose 0.03 percentage points, inching forward from 18.02% to 18.05%. Furthermore, the average loan amount offered to potential homebuyers fell from $285,903 in Q2 to $257,749 in Q3, dropping around $28,000.
When it came to offering the lowest down payments, Alaska, West Virginia and Mississippi took the lead.
  • Alaska’s down payment percentage was 15.41%, averaging $36,476. The average loan offer amount was $236,643.
  • West Virginia’s down payment percentage was 15.44%, averaging $21,415. The average loan offer amount was $138,696.
  • Mississippi’s down payment percentage was 15.78%, averaging $22,964. The average loan offer amount was $145,523.
However, when it came to offering the highest average own payments, California, Hawaii and Delaware reigned over all.
  • California’s down payment percentage was 21.44%, averaging $97,809. The average loan offer amount was $454,146.
  • Hawaii’s down payment percentage was 21.32%, averaging $69,923. The average loan offer amount was $328,046.
  • Delaware’s down payment percentage was 21.29%, averaging $51,678. The average loan offer amount was $242,735.
The image below highlights the top ten highest and lowest down payment percentages across the country.
LendingTree Down payments
 NOTE:  LendingTree’s report covers conventional 30-year fixed mortgages offers that borrowers received on LendingTree’s platform in the third quarter of 2018. According to the company, the down payment is the total dollar amount contributed to the purchase price excluding the mortgage.

Source: https://www.housingwire.com/articles/47237-average-american-putting-less-money-down-when-buying-a-home

Popular posts from this blog

Advice Young Adults Need to Avoid Buyer’s Remorse

Advice Young Adults Need to Avoid Buyer’s Remorse March 4, 2019 Most young adults have financial regrets about their home purchase, a new Bankrate survey shows, but much of their grief could have been avoided with proper planning. That’s where you come in: Younger buyers have a need for more professional guidance about the costs of homeownership. Sixty-three percent of millennial homeowners—more than any other generation—expressed buyer’s remorse, most often pertaining to closing costs, home maintenance, and other hidden expenses, according to the survey of more than 2,000 consumers. “When you buy a house, you can’t call the maintenance company or a landlord to fix major issues; it’s all on you,” says Luis Rosa, a financial planner in Henderson, Nev. Extra expenses, such as needing a new air conditioner, furnace, or water heater, often catch first-time buyers by surprise, Rosa adds. “I always advise home buyers to create savings buckets and open a savings account
Read more

Housing Slowdown Doesn’t Scare First-Time Buyers

Housing Slowdown Doesn’t Scare First-Time Buyers March 4, 2019 Despite recent declines in home sales, sluggish growth in single-family home construction, and mounting affordability concerns, first-time buyers are outperforming other segments of the market, according to a new report released by Genworth Mortgage Insurance. “The first-time home buyer market has been more resilient during the [housing] slowdown compared to repeat buyers,” writes Tian Liu, chief economist at Genworth Mortgage Insurance. About 482,000 first-time buyers purchased homes in the fourth quarter of 2018. Though that’s 3 percent lower than a year ago, it bests the 7 percent year-over-year decline in repeat buyer activity, according to the report. “This is a reminder that first-time home buyers differ from other buyer groups in terms of why they buy,” Liu notes. “Their purchase decisions are more likely driven by the fact that many are starting families and reaching peak homebuying ages. Even
Read more

What Buyers Should Ask After a Home Inspection

What Buyers Should Ask After a Home Inspection October 9, 2018 You are here Home News and Commentary Daily News What Buyers Should Ask After a Home Inspection Share Facebook Twitter LinkedIn Print October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any flaws that might have been found. That’s why it’s important they take the opportunity to learn more so that they can move forward confidently in the transaction. A recent article at realtor.com® recommends home buyers ask their inspector clarifying questions like: “I don’t understand this; what does it mean?” or “Is this a major or minor problem?” and “Do I need to call in another expert for a follow-up?” Home inspectors are bound to uncover something in a home; no home is perfect. But the majority of the problems they uncover will likely be minor. Have the home inspector clarify which problems fall within the “minor” or “major” categories. Keep in mind: “The inspector can't tel
Read more