Tag Archives: shopping

LendingTree Study: Comparison Shopping for Personal Loans Can Save Consumers 35 Percent on Interest

Posted on by
Reply

Charlotte, NC – June 27, 2018 (PRNewswire) LendingTree®, the nation’s leading online loan marketplace, today released a new analysis of personal loan offers to LendingTree users that found shopping around for personal loans can save consumers 35 percent. The difference in APRs is especially pronounced in personal loans, and LendingTree analysts found a wide variety of APRs offered to the same consumers, representing substantial amounts of money over the course of a loan.

Lending Tree

LendingTree’s study found eligible borrowers can save an average of $1,700 ($47 a month) over the course of a three-year personal loan by shopping for a lower rate — potential savings of 35 percent. LendingTree’s analysis assumed borrowers took out a $10,328 personal loan for three years — the average amount sought by borrowers. The differences in cost become more dramatic as the loan amounts and the length of the loan term increase.

“APRs on personal loans tend to run higher than they do for collateralized debt, which may account for the large spread between the lowest and highest offers consumers receive on the LendingTree platform,” explained Kali McFadden, senior research analyst at LendingTree. “The takeaway is quite clear: Consumers can, and absolutely should, bargain hunt for personal loans.”

Analysis findings:

  • Eligible borrowers can save an average of $1,700 ($47 a month) over the course of a three-year personal loan by shopping for a lower rate, a difference of 35 percent.
  • The range (spread) between the highest APR and lowest APR offered to the average consumer is 8.79 percentage points (879 basis points).
  • Consumers with lower credit scores (640 to 679) can save up to an average of $1,726 ($48 a month) — the highest savings of any credit score group in the study.
  • The highest APR offers for borrowers with the best credit scores (760 and over) are more than twice as high as the lowest.

Lenders offer a wide range of APRs even to borrowers with excellent credit

People with excellent credit scores may feel they can always get the best rate no matter which lender they choose. But LendingTree’s study found the gap between the lowest and the highest APRs offered to those with excellent credit was just as wide as the gap in rates offered to people with average credit.

Real Estate Chart

A person with a 760+ credit score saw a low rate of 7.55 percent APR and a high rate of more than double that amount — 16.38 percent APR. On a three-year personal loan valued at $10,328 — the average amount sought by borrowers — accepting that high rate could add an additional $1,566.11 to the cost of the loan.

The gap between the lowest and highest APRs offered to borrowers with excellent credit scores was 8.82 percentage points, very close to the 8.55 gap found in rates offered to borrowers with fair credit scores (640-679).

The study found an even wider spread between APRs offered for people toeing the line between good credit and excellent credit. For people with scores between 720 to 759, there was a 9.28 percent gap between the lowest APR and the highest APR offered. Over three years, someone who accepted the higher rate would pay nearly $1,700 in added interest charges on their loan.

Real Estate Inforgraphic

Shopping is most important when your credit score is low

When looking for a loan, comparing options is always a good idea, but shopping around for the best APR is crucial when a borrower’s credit score is average.

According to the study findings, those with the lowest credit scores have the smallest difference, 8.55 percentage points, between the average lowest and highest APRs. The lowest average is 24.46 percent, and the highest is 33.01 percent for those with credit scores between 640-679.

However, when looking at the total added costs over the lifetime of a loan, people with fair credit who don’t shop around end up paying more than any other credit band analyzed — up to $1,726.03 more. That’s about $160 more than the additional cost added for those with the highest credit scores.

To view the full report, visit https://www.lendingtree.com/personal/lendingtree-study-shopping-around-for-personal-loans-can-save-consumers-35/.

Methodology:

Average offered APRs and loan amount were calculated for consumers with scores of at least 640 who inquired about a personal loan in May 2018 on the LendingTree platform, where users can receive loan offers from multiple lenders. The loan amount represents the average loan amount received by personal loan borrowers in May 2018 on the LendingTree platform.

About LendingTree

LendingTree (NASDAQ: TREE) is the nation’s leading online loan marketplace, empowering consumers as they comparison-shop across a full suite of loan and credit-based offerings. LendingTree provides an online marketplace which connects consumers with multiple lenders that compete for their business, as well as an array of online tools and information to help consumers find the best loan. Since inception, LendingTree has facilitated more than 65 million loan requests. LendingTree provides free monthly credit scores through My LendingTree and access to its network of over 500 lenders offering home loans, personal loans, credit cards, student loans, business loans, home equity loans/lines of credit, auto loans and more. 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
(704) 943-8208
Megan.greuling@lendingtree.com

Growth of Online Home Shopping Puts Premium on Listings That Grab Attention of Buyers with Alluring Photos, RE/MAX Brokers Report

Posted on by
Reply

Chicago, IL – June 4, 2018 (PRNewswire) Online home shopping is no longer a growing trend, it’s an undeniable reality. By some estimates, over 90 percent of homebuyers shop that way.

Remax Northern Illinois

One result of this change in buyer habits, contends Jeff LaGrange, Vice President of the RE/MAX Northern Illinois Region, is that home listings, which once were little more than compilations of basic information, now can be powerful marketing tools that greatly help or hinder a home sale.

“Online shopping lets buyers view more properties in greater detail than was ever possible in the days of paper listings,” said LaGrange. That’s wonderful for buyers but a challenge for sellers.

“Online listings have to capture the attention of buyers or the home is less likely to sell, and there are two approaches to do that effectively,” he said. “One route is to price the home very aggressively. That certainly gets buyers’ attention. The other is to present the home via an alluring series of photos that make buyers think, ‘Gee, that place looks great. Let’s ask for a showing.’ ”

The way a home is presented online “has become the most important element in the entire sales process,” contends Mike Cluck, a broker with RE/MAX Excels in Geneva, Ill.

“Homes that are presented effectively in photos are the ones drawing the most showings and fastest sales,” he said.

RE/MAX brokers surveyed on this topic recommend using a professional photographer for listing photos in almost every instance, and Madonna Egan of RE/MAX 1st Service in Orland Park, Ill., offered a recent example of the difference good photos can make.

“Not long ago a couple contacted me after their home failed to sell for a year. I looked at the listing, and the photos were dark and clearly not of professional caliber. Plus, the home hadn’t been prepared fully,” Egan recalled. “First, we prepared the home thoroughly, then brought in a professional photographer. The results were immediate. The home was under contract in a week.”

However, Egan concedes that for very modestly priced homes she will often take the photos herself.

“I’ll make sure the home looks its best and then take plenty of photos, and if I’m not satisfied with what I’ve gotten, I’ll come back and do it again,” she said.

As for using video in online listings, the RE/MAX brokers were united in their lack of enthusiasm.

“Our office has experimented with several video formats and concluded they generally aren’t worth the trouble,” explained Ashley Fuhr of RE/MAX Edge in Chicago. “I’ve found photos and a floor plan have greater impact.”

Tedd Bertrand of RE/MAX Showcase in Gurnee, Ill., uses videos rarely and then only those shot from a drone to show the home’s exterior and surroundings.

“It’s difficult to give buyers a feel for a home’s surroundings with still photos. Drone videos do that effectively. They also offer a view of the roof, and especially with larger homes, buyers like to see that,” Bertrand said.

Once photos are taken, how many should be used in the listing?

“With current technology there is almost no practical limit, but I tailor the number to the size of the property and its price,” said Fuhr. “For a one-bedroom condo, six to eight photos may be sufficient, but for a luxury home, 30 might not be too many, and you might want to show the home both in bright daylight and as it looks in the evening.”

When it comes to preparing a home for those photos, Bertrand and the other brokers agree that minimizing clutter, emphasizing cleanliness and even doing a bit of staging can lead to more effective photos.

“You want to depersonalize the photos so that buyers don’t feel they’re looking at the sellers’ home but at a home they can make their own,” Bertrand said.

Perhaps the most common shortcoming the RE/MAX brokers notice in online listing photos is a lack of proper preparation.

“Their home is often the most valuable asset people own,” explained Mike Cluck. “When it’s time to sell, it needs to be presented with that reality in mind, and that means plenty of attention to detail.”

RE/MAX Northern Illinois has been the leader in the northern Illinois real estate market since 1989 providing a full range of residential and commercial services. With more than 2,200 sales associates and 106 offices throughout the area, RE/MAX Northern Illinois has helped thousands of families with their home buying and selling needs. For more information, visit www.remax.com or download the RE/MAX mobile real estate app.

Contact:

James Nathan
jim@jdnathanpr.com
(773) 588-0777