Good credit score is enough for great mortgage rate
Q: We have been looking at the houses here in Coshocton area for about a year. My husband FICO scores are 772, 819 and 821, while mine are only 653, 671 and 693. We want to get the lowest possible fixed rate mortgage and I have tried hard to raise my credit scores to over 700 or so. To get the home we want, both of our incomes are needed. I tried everything but three 15-month old 30-day late payments are likely still hurting my scores. My utilization ratio is under 10% on 2 credit cards I use, and I paying them monthly in full. I also have a student loan and an auto loan, never late on either. Is there anything you can recommend, please? We already let several homes worth buying go.
A: I think you should just find a house and buy it. Waiting for a year actually saved you money, since I am sure, home prices only went down. But your mortgage interest rate should be just fine, really, with the scores you have. If your husband are the primary borrower and you are coborrower, you will get close to the best interest rate on your fixed rate mortgage. May be a .25% worse. Today the best terms come at 740 to 750 middle FICO, with a hit for each 20 to 30 points below. .25% difference in interest on a $200,000 mortgage translates in around $33.50 per month. Every cent counts of course, and you can wait a bit more to see if the scores get better. Based on what you said here, it should take another 7 months for those 30-day lates to make their presence much less noticeable.
Sun Nov 21, 2010 11:11AM | Copyright: www.bad-credit-advisor.com | More in Mortgage | Comments (0)
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