Average American putting less money down when buying a home

Posted On October 27, 2018

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by Webmaster

The average down payment on a U.S. home fell in the third quarter, according to the latest data collected from digital loan sourcing site LendingTree.

Each quarter, LendingTree compares down payment percentages and conventional 30-year, fixed-rate purchase mortgage offer amounts across the country. They found that the average it decreased by nearly 10% in the third quarter — falling from $52,480 to $47,265.

According to the report, despite a decrease in the payment amount, down payments as a percentage of purchase price remained relatively the same

The report indicates that the 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 down 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.

 

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