Your Credit Score: How It Can Effect Your Monthly Mortgage Payment
You probably know your Social Security number, some of your passwords, usually your PIN number. But do you know the number that will cost — or save you thousands of dollars? Look how your credit score number can impact your monthly payment:
Better Score = Cheaper House
If a family put a 3.5% down payment on a $172,900 four-bedroom house, they would take out a loan for $166,850. Here’s what their true bottom line would look like.
Credit Score of 760+ yields a rate of 4.981% with a monthly payment of $893.75
Credit Score of 680-699 yields a rate of 5.380% with a monthly payment of $934.83
Did you get that? The guy with the credit score in the range of 680-699 ends up paying approximately $41.00 a month MORE than the guy with a 760+ credit score! That’s every month!
Bottom Line: You will end up paying $15,000.00 MORE for the home over the life of the loan!
If your credit score is less than 620: It will be tough to get a loan at all.
Read more about your credit score and how to get an idea what it might be …
Your credit score is a number banks use to determine whether you qualify for credit and how much interest they will charge you.
- How is your score calculated?
- What impacts your credit score?
- How can you improve your score?
If you have any questions while you are searching for St. Louis Real Estate give Finding Homes for You a call at 636-386-0659. If you need help finding a lender let us know and we can offer some suggestions from lenders our clients have used.