How Credit Influences Your Mortgage Rate

How Credit Influences Your Mortgage Rate

How Credit Influences Your Mortgage Rate

Mortgage lenders care a lot about your credit. In particular, your 3-digit FICO® Score. It’s a fast, objective way to assess your creditworthiness – the likelihood that you will repay your home loan on time.

The strength of your credit not only determines whether you qualify for a home mortgage, but it is also the single most important factor used to calculate your interest rate and loan terms. This is why your FICO® Score is so important – better loan rates and terms save you money.

Want to learn the two attributes lenders look for in your credit report that can help you score a lower interest rate? Click here for the scoop.

What FICO® Score you need to get the best rate:

  • 580 is the minimum for an FHA low down payment loan
  • 640 is the minimum for most conventional programs740 is the magic number most experts will suggest to get a good rate
  • 740 is the magic number most experts will suggest to get a good rate
  • 780+ puts you in the absolute best position to get the lowest rates available

This blog post is an excerpt from “Credit Counts: How Better Credit Can Help You Score a Better Mortgage.” Click here to learn how your actions impact your FICO® credit score.

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