What’s In A Score? Good News By Any Other Name Would Be As Sweet

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It’s time to put your credit score in perspective. I’m sure you’re all aware that the higher your credit score, the lower your interest rates on car loans, personal loans, and mortgages, but how much? I decided to get a couple quotes to just give you an idea of how much a few points on your score can save you on a mortgage. As a reminder, these are not offers, these are estimates using no personal information intended to give you a sense of the impact.

Before we begin, let’s cover a few terms that are used here. APR stands for Annual Percentage Rate, or the cost of the loan per year. A fixed rate mortgage has a set interest rate for the life of the loan. The downpayment is exactly that, the amount you have to pay at the time of closing.

I used the same elements for three credit score ranges, the purchase price was $200,000 for a 30 year fixed rate mortgage, with a 20% downpayment, (or $40,000). The first range I selected was their lowest range available, 660-679, that showed an interest rate of 4.375%, and the same for the APR. What does that mean monthly payment wise and total over the 30 years? The total cost of the mortgage would be $354,197, monthly payments would be $984, not including property taxes, utilities, etc.

The next range was 680-699, the interest rate there was 3.75% and 3.786% for the APR, making the total cost of the mortgage $333,443, and $926 monthly. Nearly $21,000 less than the 660-679 range. Finally, a credit score range of 700-719 returned an estimate of 3.5%, and an APR of 3.539%, with a total mortgage cost of $323,312, and $898 each month. Just shy of $31,ooo lower than the 660-679 range, and still over $10,000 less than the 680-699 range. While 10,000, or 20,000, or even 30,000 dollars may not seem like a lot over the course of 30 years, but another way to look at it is that $30,000 may very well be another year of work. Would you rather fix your credit now, and retire a year earlier, go on a few more vacations, maybe get a new car? Or work longer, take more “stay-cations”, and make that car last a few more years? The choice is up to you, call or click today to see what your options are, and how easy it can be!


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