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.