There is a long way to go after Googling credit repair services near me. Even when you are working with one of the best credit repair consultation services provider, and, the services provider is also providing you with the best credit repair customer service to listen to your concerns, it is good for you to be aware of the factors that affect your credit score and how your credit score can affect your finances. In this article, you will learn how your credit score can affect the mortgage rate. Even when the normal mortgage rate is high, your credit score can help you in getting low mortgage rate and you can buy your dream house.
So, boost your credit score. It is one of the important factors lenders consider. Your credit score can help in qualifying for a loan. You can land a low mortgage rate. If you have a bad credit score, you will land a loan with a high rate. And sometimes, you will even fail to land a loan.
170,000 mortgage loans were analyzed and mortgage rates for specific credit scores were compared. The comparison was done with 30-year fixed-rate mortgages.
Creditworthiness can be measure on a scale of 300 to 850. It is good to have a high credit score because it is always good to get a low mortgage rate. You can secure big savings simply by increasing your credit score by 25. However, there is a certain threshold. And, beyond that threshold, credit score is not the only factor considered by the lenders. They will also consider your income while determining your mortgage rate. This is true, even when you have a credit score above 700. So, there are some practical limits and you should ask the credit repair customer service provider about these limits.
We have divided credit score into different batches. Let’s see how a credit score is going to affect mortgage rate.
Credit score <625
If you have a credit score below 625, chances are that your mortgage loan will not be approved. Even when you get your mortgage loan approved, mortgage loan rate will be high. So, you need to improve your credit score.
Credit score between 625 and 650
If your credit score fall within this range of credit scores, you will find that the terms of the mortgage rate you have secured are different. The median mortgage rate for borrowers having a credit score between 625 and 650 is 3.88%. The 10% of the borrowers within this group got mortgage rate equal to or more than 4.5%.
Credit score between 650 and 675
If your score is somewhere between this range then expect to get around 3.75 % mortgage rate. This is the median rate for this group. The 10% of the borrowers with a credit score between 650 and 670 landed mortgage rate equal to or more than 4.38%.
Credit score between 675 and 700
The median mortgage rate for people having credit score within this group is 3.75% which is equal to people with a credit score between 650 and 675. The 10% of borrowers in this group got mortgage rate 4.25% or more.
Credit score between 700 and 725
The median mortgage rate for people having a credit score from 700 to 725 is 3.75% and the costliest mortgage rate in this group is 4.12% or more.
Credit score between 735 and 750
The median mortgage rate is 3.62%. The 10% of the people within this group landed mortgage rate 4% or more.
Credit score > 750
The median rate is 3.62% for people having credit score more than 750. Mortgage rate for the costliest loans is 3.88% or more.
It clearly shows that you should improve your credit score. Look for credit repair consultation to correct the errors in your credit report. This will help improving your credit score.
Jaspreet is a blogger who loves to write about anything that is related to Beauty, Fashion, Business, Travel and Lifestyle Blogger by passion.