# Todays Mortgage Rate by rej19063

VIEWS: 9 PAGES: 11

• pg 1
```									Your Credit Score
Date
What is a Credit Score?

•   A 3-digit number used by lenders to evaluate the risk associated with
lending you money

•   It is generated by a mathematical model created by Fair Isaac &
Company in the 1950’s.

•   There are 3 Major Credit Bureaus, Equifax, Experian and Trans Union –
You have 3 Scores

•   Scores range from 350-850
What is a Good Score?

Above 720 =     Excellent

680 =           Good

620 =           Fair

Below 620 =     Poor
HOW MUCH WOULD YOUR MIDDLE SCORE COST YOU IN A MORTGAGE LOAN TRANSACTION
AT TODAYS RATES?

Home Financing: A 30-Year Fixed with a loan principal amount of \$359,650*

FICO Score          APR Rate         Monthly Payment               Interest Paid
Above 720            5.688%               \$2085                     \$390,833
620-719          5.813-7.501         \$2113-\$2515             \$401,115-\$545,750
Below 620         8.531-9.289%        \$2,773-\$2,969            \$638,739-\$709,162

If your score improves to 720-850, you could save an additional \$318,329
If your score improves to 700-719, you could save an additional \$308,047
If your score improves to 675-699, you could save an additional \$263,094
If your score improves to 620-674, you could save an additional \$163,422
A borrower who increases his or her credit score from 620 to 720+ can potentially save \$884 per
month on mortgage payments, \$10,608 per year, and approximately \$318,329 over the life of the
30-year loan.*
Five Factors of Credit Scoring

Payment History                                  Length of History
Late Pays
Collections
Charge-Offs
Repossessions                                     New Credit
Foreclosures                                      Soft Inquiries
Tax Liens                                         Hard Inquiries
BK’s
Judgments

Amounts Owed        Types of Credit Used
A Mortgage Loan
Credit Cards
An Auto Loan
Mortgage Loans
2-3 Major Credit Cards
Auto Loans
HELOC’s
Installment Loans
1. Payment History 35% – How do you pay your bills?

WHAT YOU SHOULD KNOW
     A recent
     Paying a collection
CONTENT REMOVED


Being past due
Derogatory accounts do NOT

FOR DEMO PURPOSES
     A divorce decree
2. Amounts Owed 30% – Managing Your Debt

WHAT YOU SHOULD KNOW

   New debt
   Keep balances below
CONTENT REMOVED
   When preparing to
   Don’t consolidate

FOR DEMO PURPOSES


If you go over the limit on your credit card
HELOC’s
   Do not close credit cards EXCEPT
   USE YOUR CREDIT CARDS or
3. Length of History 15% 4. Mix of Credit 10%

WHAT YOU SHOULD KNOW
   Hold onto
   New credit users
CONTENT REMOVED


The best mix of credit is
The type of credit card matters because

FOR DEMO PURPOSES
   The best amount of credit cards to have is
5. Inquiries – 10%

WHAT YOU SHOULD KNOW
   Soft vs. Hard Inquiries
   14 Day
CONTENT REMOVED


Inquiries affect the score
Inquiries can cost between

FOR DEMO PURPOSES
   You are Pre-Approved means
START IMPROVING YOUR CREDIT SCORES TODAY!

Step 1 -

CONTENT REMOVED
Step 2 -

FOR DEMO PURPOSES
Step 3-