Lower credit scores create a heavy financial burden on New Jersey borrowers. There’s nothing new about that. But, after the downturn in our economy, the impact is much more consequential. Take a peak at the tables below to see the differences in monthly payments with various credit scores. (Note that the interest rates shown are only to illustrate the spread between credit scores, not to indicate current rates.) Call me for current mortgage rates.
There was a time when a score of 660 would get a borrower the best mortgage rates. Now, that score must be at least 700 in most cases. And the payment difference is substantial. If you are looking to refinance or get a mortgage loan for a new home in the upcoming months, then you should look into repairing your credit if possible. High credit scores are especially important for the self-employed, cash-out refinancing, investment property financing, and certain mortgage programs.
How Monthly Payment Can Vary - $250,000 Mortgage (30 yr)
| FICO Score | Monthly Payment | APR |
|---|---|---|
| 760-850 | $1,269.00 | 4.516% |
| 700-759 | $1,303.00 | 4.740% |
| 680-699 | $1,329.00 | 4.917% |
| 660-679 | $1,362.00 | 5.132% |
| 640-659 | $1,429.00 | 5.563% |
| 620-639 | $1,517.00 | 6.111% |
How Monthly Payment Can Vary - $50,000 Home Equity Loan
| FICO Score | Monthly Payment | APR |
|---|---|---|
| 740-850 | $456.00 | 7.227% |
| 720-739 | $464.00 | 7.516% |
| 700-719 | $478.00 | 7.998% |
| 670-699 | $500.00 | 8.745% |
| 640-669 | $543.00 | 10.190% |
| 620-639 | $581.00 | 11.394% |
How Monthly Payment Can Vary - $20,000 Auto Loan (3 yrs)
| FICO Score | Monthly Payment | APR |
|---|---|---|
| 720-850 | $606.00 | 5.772% |
| 690-719 | $624.00 | 6.677% |
| 660-689 | $643.00 | 9.789% |
| 620-659 | $671.00 | 12.644% |
| 590-619 | $723.00 | 17.909% |
| 500-589 | $732.00 | 18.788% |
Credit repair will take some time, patience and dedication, but the results will be worth it.
Until my next post . . .
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