With tightened mortgage restrictions, many need to push up their FICO score just to obtain a home. Researchers have recently analyzed interest rate quotes using the real estate website Zillow.com. Alarmingly, their findings show that those with credit scores of 620 or below are likely unable to obtain a mortgage at all in today’s market. According to reports, provided by FICO, over 25% of all American adults fall into this category. With a quarter of the population having virtually no access to legitimate mortgage loans, the services of credit repair specialists are absolutely crucial while banks continue to protect themselves from risk.
Another quarter of the US population is represented by FICO scores between 620 and 720. According to experts, records kept by Zillow.com show that the rates for these individuals are less than optimal as well. Although these individuals may be able to obtain a mortgage, they’ll end up paying much more than those with great credit over the life of their loan.
In the past, raising one’s score above the so called “magic score” of 720, would have been enough to score you a lower interest rate when shopping for a mortgage, saving you significantly over the life of the loan. Today, exports report, that even just 720 may not be getting you the very best interest rate. These current findings show just how important picking up every point you can will pay off.
In most cases, you’ll want to get your score above 720 to get the best rates possible. Experts estimate that for each 20 point increase in FICO score, the average interest rate drops by at least 0.12 percent. This percentage translates into over 6,000 worth of savings over the course of an average home loan (for a $300,000 with 20% down).
If you’re among the many who has been working hard to boost your credit score and repair your credit, going through the motions on your own, may not be yielding you all the results you may have hoped for. If you’re trying to raise your score as high as possible, you’re certainly in good company. When you’re working on obtaining a mortgage, we at Clarion Mortgage can assist you in repairing and restoring your credit score. Fill in the contact form on the home page and we will contact you right away.