Like it or not, your credit score is a big deal.

And, as you probably know, the bigger the better! It’s surprising how much your credit score can affect your monthly mortgage payment. If you’re buying a home and have a credit score between 760 and 850 the rate you qualify for could be more than 1.5% less than if your credit score was under 640.

For example: at the higher credit score the interest could be around 4.093% and at the lower score it could be as high as 5.682%. The principal and interest payment on a loan of $300,000 at the lower interest rate would be $1,448 per month. The payment for someone with a credit score of 640 or less would probably be closer to $1,738 per month for principal and interest.

Moral of the story, know your credit score.

If you would like a little more information, click here.  

Posted on May 24, 2016 at 5:57 pm
Sally Baker | Category: Home Mortgage, Homeowners, Interest Rates, Mortgages, Portland Real Estate

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