Most homebuyers probably know that their FICO mortgage score can determine whether they qualify for a loan, but they may not be aware that it can determine what interest rate they’ll pay.
The same $300,000, 30-year, fixed-rate mortgage can have a principal and interest payment that ranges from as low as $1,340 or as high as $1,619 based on this recent picture in time. The variable is the FICO score of the borrower. Use this calculator to see current rates and your loan amount.
|$300,000 30-year Fixed Rate Mortgage|
|FICO Score||Interest Rate||Monthly Payment||Total Interest Paid|
While you can get a conventional mortgage with as low as a 620 FICO score assuming the rest of your qualifications are strong, a higher FICO score will lower the rate you’ll have to pay which results in lower payments and ten of thousands of dollars less in interest over the life of the mortgage.
It can be a smart idea to counsel with a trusted mortgage professional about your current FICO mortgage score and find out what you need to do to raise it. Call (313) 909-5851 for a recommendation.