HOW YOUR CREDIT SCORE AFFECTS YOUR MORTGAGE PAYMENT How would you like to pay $170,000 more than you had to for a house? Most Americans don't realize how much a low credit score is costing them, particularly when it comes to mortgage loans. The table below shows the average interest rate one would pay for a mortgage loan as of September 2005 based on various credit scores. Note that interest rates vary from week-to-week and from state-to-state. The current mortgage interest rates as you are reading this article are not the same as the ones presented in the table below. The table indicates that people with low credit scores will pay about $172,000 more for their homes and their monthly payments will be about $475 higher! Think of how big your retirement nest egg would be if you invested that $475 each month in a retirement account for 30 years!!! This is why your goal should be to acquire a credit score of at least 720, but ideally 750 or higher. Interest Paid on a $200,000, 30-year Mortgage Credit Score APR Monthly Payment Total Interest -- 30 Years 720 - 850 5.79% $1173 $222,140 700 - 719 5.92% $1189 $227,888 675 - 699 6.46% $1258 $253,007 620 - 674 7.61% $1413 $308,670 560 - 619 8.53% $1542 $355,200 500 - 559 9.29% $1651 $394,362 No matter how low your credit score is today, you can begin work on improving it and eventually obtain a high credit score. |
Debt Kit -- Settle unsecured debts for less than half of amount owed Credit Kit -- Improve your credit rating and reduce monthly payments by $200+ |
Credit > How Your Credit Score Affects Your Mortgage Payment |
Credit > How Your Credit Score Affects Your Mortgage Payment |
Debt Kit -- Settle unsecured debts for less than half of amount owed Credit Kit -- Improve your credit rating and reduce monthly payments by $200+ |
HOW YOUR CREDIT SCORE AFFECTS YOUR MORTGAGE PAYMENT How would you like to pay $170,000 more than you had to for a house? Most Americans don't realize how much a low credit score is costing them, particularly when it comes to mortgage loans. The table below shows the average interest rate one would pay for a mortgage loan as of September 2005 based on various credit scores. Note that interest rates vary from week-to-week and from state-to-state. The current mortgage interest rates as you are reading this article are not the same as the ones presented in the table below. The table indicates that people with low credit scores will pay about $172,000 more for their homes and their monthly payments will be about $475 higher! Think of how big your retirement nest egg would be if you invested that $475 each month in a retirement account for 30 years!!! This is why your goal should be to acquire a credit score of at least 720, but ideally 750 or higher. Interest Paid on a $200,000, 30-year Mortgage Credit Score APR Monthly Payment Total Interest -- 30 Years 720 - 850 5.79% $1173 $222,140 700 - 719 5.92% $1189 $227,888 675 - 699 6.46% $1258 $253,007 620 - 674 7.61% $1413 $308,670 560 - 619 8.53% $1542 $355,200 500 - 559 9.29% $1651 $394,362 No matter how low your credit score is today, you can begin work on improving it and eventually obtain a high credit score. |
