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LendingTree Ranks America’s Most Expensive Small Towns

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Vineyard Haven, Mass., Summit Park, Utah, and Jackson, Wyo. have the most expensive home prices among small towns in US

Charlotte, NC – Dec. 2, 2020 (PRNewswire) In its latest study, LendingTree® analyzed the 50 US towns with populations under 50,000 with the most expensive median-home values. LendingTree then ranked the towns based on where home values were the highest and also compared home values in these towns to home values in the nation’s 50 largest cities. The goal: To determine whether towns are actually less expensive than cities.

Key findings

  • Small towns Vineyard Haven, Mass., Summit Park, Utah and Jackson, Wyo., have the most expensive home prices in the nation. The median home prices in these towns are $667,400, $598,900 and $563,100 respectively, meaning that a home in any of these areas costs about as much as a home in Los Angeles does. In fact, homes in Vineyard Haven and Summit Park are even more expensive than they are in Los Angeles.
  • Relative to income, homes in Vineyard Haven, Mass., Breckenridge, Colo. and Jackson, Wyo., are the most expensive. In these areas, the median home price is an average of 7.5 times higher than the median area income. This suggests that homebuyers in these towns have to stretch their budgets in order to buy a home.
  • Homes are the least expensive relative to median household income in Los Alamos, N.M., Gillette, Wyo. and Rock Springs, Wyo. The median home price in these areas is an average 2.7 times higher than the median area income, suggesting that homes in each town are relatively affordable. However, this isn’t all that surprising given that the median income in each town is higher than the overall average for the towns featured in LendingTree’s study, while home prices are lower than average.
  • On average, buying a home in one of the nation’s 50 most expensive towns is more costly than buying a home in one of the nation’s largest metros. An average of the median home prices across the towns featured in LendingTree’s study is $271,224. In the nation’s 50 largest cities, the average of median home prices is $269,180.
  • Although America’s most expensive towns are often more expensive than its largest cities, people who live in towns tend to earn less income than they would in a city. The median household income across the nation’s most expensive towns averages to $60,150, nearly $7,000 less than the average median household income across the nation’s 50 largest cities.
Top 10 Most Expensive Small Towns in US 
RankMicropolitan areaTotal population 2018Median household incomeMedian home valueHome value to income ratio
1Vineyard Haven, MA17,313$71,224$667,4009.37
2Summit Park, UT40,511$100,453$598,9005.96
3Jackson, WY34,139$78,452$563,1007.18
4Breckenridge, CO30,429$77,589$563,0007.26
5Steamboat Springs, CO24,874$74,273$510,6006.87
6Heber, UT30,523$77,449$388,9005.02
7Hood River, OR23,131$62,935$355,1005.64
8Gardnerville Ranchos, NV47,828$62,503$346,5005.54
9Juneau, AK32,330$88,213$344,0003.9
10Hailey, ID28,201$51,207$340,8006.66

To view the full report, visit: https://www.lendingtree.com/home/mortgage/most-expensive-towns-in-america/

Methodology
Data used in this study comes from the 2017 American Community Survey 5-Year Estimates (the most recent survey which has the data necessary to perform this study). For the purposes of this study, LendingTree used micropolitan level data to approximate town level data.

When determining whether or not a home is affordable, the assumption is that an income earner will be able to afford a 20% down payment on the median home value in their area, and that they will receive a mortgage loan with a rate of 4.6% (the average rate offered to Americans). By using that data, the likely monthly payment and down payment for a median-priced home in a given micropolitan area were calculated.

An “affordable” monthly mortgage payment is based on the “28% rule,” which says that a person should not spend more than 28% of their yearly gross salary on yearly costs related to housing. This rule, while not necessarily applicable to everyone, is useful for homebuyers to keep in mind, as it helps to ensure that they are not overspending on their home and leaving too little money for other expenses.

By subtracting the monthly housing payment that is affordable to an income earner in the geographies highlighted in the study from the calculated housing payment that would be required to purchase a home valued at the median level, we are able to determine whether or not an average townsperson can reasonably afford to purchase a home in the town that they live in.

About LendingTree
LendingTree (NASDAQ: TREE) is the nation’s leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student loans, insurance, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers’ credit accounts against offers on our network and notifies consumers when there is an opportunity to save money. In short, LendingTree’s purpose is to help simplify financial decisions for life’s meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree

MEDIA CONTACT:
Stacia Werksma
Stacia@lendingtreenews.com

SOURCE LendingTree.com

64% of Homebuyers Are Willing To Go Over Budget For Their Dream Home

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New LendingTree survey finds many potential buyers are considering stretching their budgets to buy a home

Charlotte, NC – Aug. 26, 2020 (PRNewswire) LendingTree®, the nation’s leading online loan marketplace, released its findings on a survey of more than 1,000 potential homebuyers. The survey found that amid historically low mortgage rates and a limited number of affordable homes for sale, buyer competition is heating up. That pressure is forcing many potential buyers to consider stretching their budget to get in the game.

Key findings

  • 64% of homebuyers are willing to go over budget for their perfect house.
  • When homebuyers were asked what they feel is most important when looking for a home, the top three responses were: location (30%), a home within budget (27%) and enough space (24%).
  • More than a third (37%) of buyers say finding a home within their budget is the most stressful part of the process.
  • Black and Hispanic homebuyers were about twice as likely as white buyers to say applying for a mortgage is the most stressful part of the homebuying process.
  • About 1 in 6 buyers say they stress most about finding a home because of the low housing inventory in their area.
  • Another 16% are most stressed about trying to sell their current home.
  • More than 1 in 10 buyers said that they didn’t feel their mortgage lender was effective at explaining their available loan options.
  • 33% of homebuyers plan to stay in their next new home for at least 15 years, while another 18% say they’d live in their next home for less than five years.

While going over budget may be tempting, LendingTree’s Chief Economist, Tendayi Kapfidze, says it’s not a good idea: “I urge homebuyers to be very cautious about going over budget. Many people underestimate the maintenance costs of owning a home. If you are stretched financially and underinvest in maintenance it can diminish the value of your home.”

To view the full report, visit: https://www.lendingtree.com/home/mortgage/nearly-two-thirds-of-homebuyers-would-go-over-budget-for-their-dream-home/

Methodology
For this survey, LendingTree commissioned Qualtrics, an experience management firm, to gather responses from 1,006 homebuyers, with the sample base proportioned to represent the overall population. The survey was fielded April 24-30, 2020.

We defined generations* by using the following age ranges:

Millennials: ages 24-39
Generation X: ages 40-54
Baby boomers: ages 55-74

About LendingTree
LendingTree (NASDAQ: TREE) is the nation’s leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student loans, insurance, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers’ credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree’s purpose is to help simplify financial decisions for life’s meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.

SOURCE LendingTree.com

LendingTree Study Analyzes the Real Costs of Bankruptcy

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Study finds that even though bankruptcy filers pay more for loans, they aren’t completely shut out of the market; more than 70% of filers are mortgage-eligible after 5 years

Charlotte, NC – March 24, 2020 (PRNewswire) LendingTree®, the nation’s leading online loan marketplace, released its study on the costs bankruptcy experienced by individuals who have filed for bankruptcy and the effect on an individual’s credit. The report found that consumers who recently filed for bankruptcy aren’t completely shut out of the market, though interest rates affect their cost for new credit. In fact, more than half of those who filed for bankruptcy one year before visiting LendingTree had credit scores of 640 and higher. 

Key findings

  • 56% of people who filed for bankruptcy one year before seeking out loan offers on LendingTree have credit scores of 640 or higher.
    • Out of those, 17% had a score of 680 or higher; 5% had scores of 700 or higher; and 1.5% had a score of at least 740.
  • After two years, when some borrowers are once more eligible for conventional mortgages, 63% had prime scores of at least 640. About 5% had scores of 700 or higher.
    • After five years, 71% of borrowers had scores of 640 or higher, 41% had scores of 680 or higher and 17% had scores of at least 700.
  • However, the more recently borrowers went through bankruptcy, the higher their offered mortgage APRs were, even compared with others with similar credit scores.
    • Those with scores of 760+ were a stark exception; they got better APR offers, on average, than those who had no bankruptcies on their records.
  • Mortgage borrowers two years out from bankruptcy can expect to pay almost $26,000 more over the life of their mortgage than people without a bankruptcy on their records.
    • Even after five years, they can expect to pay more than $9,600.
  • People looking for auto loans less than a year from their bankruptcy will pay almost $2,900 more for a $25,000 5-year car loan than those with no bankruptcies on record.
    • The extra costs vary over the first five years following bankruptcy, but they are always at least $1,250 higher than for those without a bankruptcy.

There are plenty of reasons why a person might file for bankruptcy, like insurmountable medical bills or extended unemployment. Consumers might fear using bankruptcy as a tool because they worry that they won’t be able to secure a mortgage or another type of loan in the future. But bankruptcy doesn’t resign borrowers to low credit scores forever.

LendingTree customer data shows that more than half (56%) of all loan applicants who declared bankruptcy had a score of 640 or above just one year after filing. As the chart below shows, the percentage of consumers in all credit bands over 640 increases over time.

Credit scorePercentage of borrowers after 1 yearPercentage of borrowers after 5 years
640+55.90%71.00%
680+17.20%41.10%
700+4.60%17.10%
740+1.50%1.50%

Borrowers who recently filed for bankruptcy pay $25,000+ more for a mortgage

Bankruptcy filers could pay tens of thousands of dollars more over the lifetime of a mortgage loan compared with borrowers without a bankruptcy on their credit report. Two years post-bankruptcy, LendingTree customers paid over $25,000 more in interest than those with no bankruptcies on a $250,000 30-year mortgage. Five years post-bankruptcy, that number is cut in half to about $10,000 more in interest.

Bankruptcy filers will pay thousands more over the life of an auto loan

Less than one year out from filing for bankruptcy, new auto loan applicants pay nearly $3,000 more on a five-year $25,000 auto loan due to higher APRs. After five years, that number drops to about $2,000.

The data suggests that although APRs eventually go down for auto loan borrowers as time passes after their bankruptcy, they’ll still pay a premium for loans in the form of higher interest rates for years to come.

Auto loan borrowers included in the study needed scores of 600 and above. LendingTree borrowers with scores from 600-639 did qualify for auto loans, but they paid a premium (typically 10%+ APR).

Offered APRs steady decrease as time passes after bankruptcy

Mortgage
Credit Score
Range		Less than 1 YrAfter 1 YrAfter 2 YrsAfter 3 YrsAfter 4 YrsAfter 5 YrsNever/ Not in
the Last 7 Yrs
640 – 679N/AN/A4.59%4.41%4.41%4.36%4.41%
680 – 719N/AN/A4.37%4.25%4.20%4.17%4.15%
720 – 759N/AN/A4.21%4.04%3.99%4.01%4.01%
760 or higherN/AN/A3.90%3.94%3.96%3.90%3.97%
Auto Credit
Score Range		Less than 1 YrAfter 1 YrAfter 2 YrsAfter 3 YrsAfter 4 YrsAfter 5 YrsNever/ Not in
the Last 7 Yrs
600 – 63915.26%12.68%12.13%11.95%11.54%13.72%11.75%
640 – 67910.76%9.90%9.32%8.59%10.09%9.03%8.65%
680 – 7197.64%7.53%7.22%7.24%6.89%7.69%6.55%
720 or higher4.67%5.52%6.03%5.38%5.69%5.04%5.59%

Potential borrowers will generally see lower offered APRs if they wait longer to apply for a loan post-bankruptcy. For instance, auto loan borrowers with credit scores between 640 and 679 will be rewarded with much lower APRs if they apply for an auto loan five years out from a bankruptcy rather than after one year.

For borrowers with credit scores of 720+, the time that’s passed after a bankruptcy doesn’t have as much of a clear effect on the offered APRs. Borrowers who can achieve such high credit scores post-bankruptcy might have other financial advantages that make them stand out as applicants, such as a higher down payment or income.

Despite short-term costs, bankruptcy is still an option for some borrowers

Consumers who are in dire need of debt relief shouldn’t rule out bankruptcy as an option just because of the negative effect it will have on their credit score. Millions of Americans have used bankruptcy as a tool to take control of their finances. Consumers who are struggling with credit card debt could consider taking out a debt consolidation loan which may offer benefits like an overall lower APR, faster debt repayment and few bills to track.  Another option is to seek out credit counseling services, which often come at no cost. If consumers are considering filing for bankruptcy, it’s important to speak with a qualified attorney to better understand the options available and the legal process.

Methodology
LendingTree looked at lending offers for a sample of more than a half million users who requested lender rate offers for mortgages and auto loans in Q4 2019. Individual users are presented with multiple offers from lenders, and these were averaged for each user.

About LendingTree
LendingTree (NASDAQ: TREE) is the nation’s leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student loans, insurance, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers’ credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree’s purpose is to help simplify financial decisions for life’s meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree. 
 

MEDIA CONTACT:
Megan Greuling
megan.greuling@lendingtree.com 
704-943-8208