How Important Credit Score to Mortgage Rate?

Friday, October 18, 2019
A house, just for illustration

Many Americans believed that there are 3 important things in their life:
- having a family with two kids
- having a house
- having barbecue and fireworks during independent day every year.

In case of a house, some time, certain people can’t have one for “a while” due to several factors, one of them is a “credit score.”

Credit score reflects financial health: the higher the score, the lower the risk. Hence, higher score tend to get loan quite easy with lower mortgage rate.

There are 5 scale range of credit score in the USA, from poor to excellent:
- 300 – 550, poor score
- 550 – 620, subprime score
- 620 – 680, acceptable score
- 680 – 740, good score
- 740 – 850, excellent score


View from a house

To apply for mortgage loans (Fannie Mae or FHA loans), we should have at least 620 credit score. Average credit score for first time home buyers was 684.

As said that higher credit score means best or lower mortgage interest rate. The different of 1% means a lot.

Just to give an idea, if the house price US$ 300 thousands, down payment US$ 50 thousand and 30 year mortgage:
- 5% interest would cost US$ 235 thousands
- 4% interest would cost US$ 180 thousands

It is clear that with 1% less of interest rate, we could save around US$ 55,000. Hope, we should consider our credit score, before applying mortgage loan.

41 comments:

  1. Great post! I learned a lot of new and useful things for myself
    http://www.recklessdiary.ru

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      A house, just for illustration

      Delete
  2. A good credit score is so important. Not only for home buying and loans, but some employers use it to determine if a person is worthy of hiring!

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      Many Americans believed that there are 3 important things in their life:
      - having a family with two kids
      - having a house
      - having barbecue and fireworks during independent day every year.

      Delete
  3. credit is a nessesarity in those times...

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      In case of a house, some time, certain people can’t have one for “a while” due to several factors, one of them is a “credit score.”

      Delete
  4. Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      Credit score reflects financial health: the higher the score, the lower the risk. Hence, higher score tend to get loan quite easy with lower mortgage rate.

      Delete
  5. Good credit is very important. Thanks for sharing. Enjoy your day!

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      There are 5 scale range of credit score in the USA, from poor to excellent:
      - 300 – 550, poor score
      - 550 – 620, subprime score
      - 620 – 680, acceptable score
      - 680 – 740, good score
      - 740 – 850, excellent score

      Delete
  6. Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      View from a house

      Delete
  7. Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      To apply for mortgage loans (Fannie Mae or FHA loans), we should have at least 620 credit score. Average credit score for first time home buyers was 684.

      Delete
  8. Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      As said that higher credit score means best or lower mortgage interest rate. The different of 1% means a lot.

      Delete
  9. I think credit scores are so important, but I don't think a lot of people today are that concerned as they should be.

    ReplyDelete
    Replies
    1. so true....

      Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      Just to give an idea, if the house price US$ 300 thousands, down payment US$ 50 thousand and 30 year mortgage:

      - 5% interest would cost US$ 235 thousands

      - 4% interest would cost US$ 180 thousands

      Delete
  10. Credit scores are so important to maintain. You never know when you will need it to help with a purchase!

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      It is clear that with 1% less of interest rate, we could save around US$ 55,000. Hope, we should consider our credit score, before applying mortgage loan.

      Delete
  11. Credit score is always important❣

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      A house, just for illustration

      Delete
  12. Yes, I agree with comments above that credit score is important.
    Wish you a nice weekend, sunny and peaceful!

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      Many Americans believed that there are 3 important things in their life:
      - having a family with two kids
      - having a house
      - having barbecue and fireworks during independent day every year.

      Delete
  13. Having a great credit score is so important and I think sometimes our younger generation doesn't see that importance.
    Good posting ♡

    ReplyDelete
    Replies
    1. Yes, indeed....

      Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      In case of a house, some time, certain people can’t have one for “a while” due to several factors, one of them is a “credit score.”

      Delete
  14. very good advice for a loan!

    x Natalie
    Lucy and the Runaways - Blog and Instagram

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -

      Delete
  15. credit rating is very important
    best regards
    Lili

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      Credit score reflects financial health: the higher the score, the lower the risk. Hence, higher score tend to get loan quite easy with lower mortgage rate.

      Delete
  16. Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      There are 5 scale range of credit score in the USA, from poor to excellent:
      - 300 – 550, poor score
      - 550 – 620, subprime score
      - 620 – 680, acceptable score
      - 680 – 740, good score
      - 740 – 850, excellent score

      Delete
  17. Hi Tanza, credit scores is realy important.
    Good post.
    I smilled when i read that 1 of the 3 important things in americans life is
    - having barbecue and fireworks during independent day every year.

    kisses
    Inventando com a Mamãe / Instagram  / Facebook / Pinterest


    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -

      Delete
  18. what a lovely house!
    HAPPY WEEK
    xoxo
    https://stylishpatterns.blogspot.com

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      View from a house

      Delete
  19. Thanks for all the information and you have such an awesome view!

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      To apply for mortgage loans (Fannie Mae or FHA loans), we should have at least 620 credit score. Average credit score for first time home buyers was 684.


      Delete
  20. So important to maintain good credit, at any stage of life.

    ReplyDelete
    Replies
    1. Thank you to visit:
      How Important Credit Score to Mortgage Rate?
      -
      As said that higher credit score means best or lower mortgage interest rate. The different of 1% means a lot.

      Delete
  21. Yes, a good credit score is important (but so is timing of the economy and, oddly enough, location. I was just able to refinance this summer when things too a deep drop and reduced by interest by .6%... well under 4%!

    Http://www.thepulpitandthepen.com

    ReplyDelete