The Condo Mania Team
Here's What a Lower Credit Score will Cost You
Mortgage providers have statistics that show that those with a lower credit score have a higher risk for nonpayment of a mortgage. Unfortunately, that means that everyone with lower credit scores will have to pay more every month via a higher interest rate.Here's an example of how much you payment may differ on a purchase of a $200,000 loan depending upon your credit score:
FICO score APR Monthly payment** 760–850 4.262% $985 700–759 4.484% $1,011 680–699 4.661% $1,032 660–679 4.876% $1,058 640–659 5.307% $1,110 620–639 5.854% $1,180
So improving your FICO score from 650 to 760 could save you about $125 per month, or $1500 per year! So hopefully this reality will get you going on the steps to improve your credit score. Check out these Five Steps to Improve your Score.
***Statistics will vary based on the type of loan you get, what the current interest rates are, and your down payment.
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Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.
The Fair Housing Act prohibits discrimination in housing based on color, race, religion, national origin, sex, familial status, or disability.
Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.
Last Updated: 2021-10-17 06:54:11