Credit Score and Your Mortgage

Everyone knows that your credit score is important, but how much can it really effect your mortgage rate?  Of course it does. Not only does it impact your rate, but it also will affect the type of loan that you can get.

Right now, it only makes sense for most borrowers to go with a conventional loan when they are over 720 for their FICO score. You take quite a few hits on the rate you can get if you fall below 720. 740 or higher is even better and 760 or higher is better still.

If you fall below the 720 range, ask about an FHA loan. You can get by with much less equity, but you will have mortgage insurance premium upfront and monthly.

Mortgage Interest Rates 8-27-09

Mortgage Interest Rates 8-11-09

Todays mortgage interest rates without buydown points are as follows:

30 year fixed rate – Conventional: 5.25 – 5.375%

15 year fixed rate – Conventional: 4.625-4.75%

30 year FHA: 5.25-5.375%

15 year FHA: 4.625-4.75%

Click here to apply for a mortgage loan, and see what you qualify for.

FHA vs Conventional

When you’re looking for new loan products, it’s important to understand some of the basics between FHA loans and conventional loans. Commission refers to any loan under the FHLMC and FNMA lending limits. Some other terms for conventional loans could be conforming, a paper, BC, A-, and other terms that mortgage brokers and lenders use in industry.

When people hear FHA loan, they typically think of a first-time home buyer loan. These days, FHA loans are more common than ever and are available for people who want to change their rates and term of their loan, or even get cash out when they  refinance. Read more