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Your FICO® Score Could $ave You A Whole Lot Of Money

Apr 27

filed under: Buying A Home, Real Estate

Do you know your FICO® score?

Do you know your FICO® score?

FICO® scores right now are extremely important when it comes to applying for a mortgage. Yes interest rates have been at all time lows, but that does not mean every one  is treated equally or we can all sing Kum ByYa about the low mortgage rate you think you can get, you know the one you saw advertised online today, the one with an APR of 4.440 for a 30 year fixed rate mortgage.  What will play a major role in your getting this type of low mortgage rate will be your FICO® score.

What is a FICO® score

A  FICO® score is a numerical rating developed and maintained by Fair Issac and Company. It is an indicator of a borrower’s creditworthiness based on a number of criteria, and most importantly is the basis upon which many lenders will decide to give you a loan. It is also known as an individual’s credit score. The scoring system is designed to predict a person’s probability of delinquincy on loan payments. The scores range between 400 and 850.

Know your FICO® score before making any mortgage decision

Most mortgage lenders will look at your FICO® scores from TransUnion, Equifax and Experian. Ask your mortgage lender what your FICO® score needs to be to qualify for their best rates and then check your scores. If your scores are not high enough, you may want to wait until your scores change. If your scores meet your lender’s requirement for a good interest rate, then now could be a great time to apply for a mortgage loan.  In either case, knowing you FICO® scores in advance will help you make the best decision.

Having a good FICO® can save you thousands of dollars on your mortgage

The chart below will show you how your FICO® score correlates with the interest rate you may be able to get as of April 27th as there are other factors involved in obtaining a loan other than your FICO® score and of course interest rates can change daily.

Chart showing FICO scores and correlating interest rates

If you are thinking that this may be a good time for you to buy a property and need mortgage assistance or help with raising your FICO® score, contact us, we would be happy to provide you with referrals.

Written by Howard Harris