Homebuyers are in their homes 11 days faster on average
The mortgage process is progressing faster so far in 2019 than it did in 2018 according to a new analysis by LendingTree.
It found that the average purchase mortgage closed in 40 days so far this year, down from 51 in 2018 and 74 in 2017. For refinance mortgages, the average days to close fell to 38 in 2019 from 43 in 2018 and 55 in 2017.
Chief economist Tendayi Kapfidze says that some of the reduction is due to lower mortgage volumes but digital solutions have also played a role in cutting the time to close a loan.
Loan-to-value ratios below 80% had shorter closing times for refinances, at 37 days compared with 42 days on mortgages with a ratio above 95% in 2019.
The study also shows that lower loan value leads to higher average closing time as larger loans are typically made to those with higher credit scores.
