Best and Worst States for Down Payments
Interest rates are rising, but the average cost of a down payment on a home is finally falling – at least in some areas of the country. According to a new study from LendingTree, the average cost of a down payment for U.S. homes on a national level fell about 10 percent between Q2 2018 and Q3 2018: from $52,480 to $47,265. However, the report went on, average down payment percentages remained steady, hovering around 18 percent.
“Even if you are not currently in the market to buy or sell a home, this data could still have an impact on you, as down payments are a function of home prices,” observed LendingTree chief economist Tendayi Kapfidze. He went on to suggest that if home prices begin to fall, homeowners might consider taking out a home equity loan before they do so.
3 States with the Lowest Down Payments
The three states with the lowest down payments in the country are:
- Alaska, with an average down payment percentage of 15.41 percent, which translates to an average $36,476 on a loan amount of $236,643.
- West Virginia, with an average down payment percentage of 15.44 percent, translating to $21,415 on a mortgage of $138,696.
- Mississippi, with an average down payment of 15.78 percent. That amounts to $22,964 on a home loan amount of $145,523.
3 States with the Highest Down Payments
The three states with the highest down payments are:
- California, where a 21.44 percent down payment of roughly $97,809 will snag you a loan offer around $454,146.
- Hawaii, where the average down payment of $51,678 equates to 21.32 percent and comes with an average offered loan amount of $328,046.
- Delaware, with an average down payment of 21.29 percent, which translates to about $51,678 on an average offered loan amount of $242,735.
The report covered conventional, 30-year fixed-rate mortgages offered on LendingTree’s platform during Q3 2018. Do you think lower down payments are good news for the housing market?