El Paso Homes for Sale|REALTY ONE Agent|First-Time Buyer
Credit Score
Scoring CategoriesThe scale runs from 300 to 850. The majority of people will have scores between 600 and 800. A score of 720 or higher will get you the most favorable interest rates on a mortgage, according to data* from Fair Isaac Corp., a California-based company that developed the credit score. (Its own score is called the FICO score.) American public’s credit scores: |
RESOURCES
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Free Credit Report
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As always the information provided herein is provided "as is" and no warranties are made.
CommentsBelow 620: A credit score under 620 puts you in the category of a “sub-prime” borrower. If you are approved for a mortgage with a credit score this low, you’ll likely pay about 3 percent more than someone with excellent credit.
620 to 674: With a below-average credit score, your options will be reduced, and you’ll pay a premium on your loan, maybe as much as 2 percent more than borrowers with excellent credit. You may need to provide more documentation than those with higher scores, including a formal appraisal of your home’s value. But if you make your payments regularly and work to improve your credit score, you should be able to refinance at a better rate, which can save you money over the life of the loan. 675 to 719: At a credit score of under 720 you won’t get the bank’s best rate. Good news is you shouldn’t have trouble finding a good loan. On a 30-year fixed-rate mortgage, expect to pay up to half a percentage point more than someone in the top category. 720 and above: great credit score and lender’s will offer you the most favorable rate. You will be eligible to borrow more than 80% of the value of your home and maybe avoid private mortgage insurance. *The opinions expressed here are my personal expert opinions as a real estate agent licensed in Texas and are to be used for general information purposes only. Nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. The data contained herein is for informational purposes only and is not represented to be error free. Any links to russell-realtor.com subscribers, user or non-members are provided as a courtesy. They are not intended to nor do they constitute an endorsement by russell-realtor.com or its contributors of the linked materials. Interest rates are accurate as of November, 2009.
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