Mortgage Rate Update
High Credit Score = Low Mortgage Rate

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

 

Mortgage Interest Rates for Fixed Rate Mortgages*

Rates as of Thursday, 31st December, 2009:

 

Term

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

360

5.250%

5.472%

$5.52

5.000%

5.131%

$5.37

15-Yr. fixed

180

4.750%

5.124%

$7.78

5.125%

5.352%

$7.97

7-Yr. fixed ARM

360

4.875%

5.092%

$5.29

5.500%

5.635%

$5.68

5-Yr. fixed ARM

360

4.250%

4.459%

$4.92

5.375%

5.509%

$5.60

3-Yr. fixed ARM

360

4.875%

5.092%

$5.29

5.375%

5.509%

$5.60

FHA 30-year fixed

360

5.250%

5.472%

$5.52

5.375%

5.509%

$5.60

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl
Accredited Loan Consultant
Pleasant Valley Home Mortgage Corp.
Phone: 856-252-1224
Cell: 609-254-6687
kpeidl@pvhmconline.com
www.karlpeidl.com

 

New Jersey: Licensed by the N. J. Department of Banking and Insurance Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.






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Karl Peidl - Accredited Loan Consultant

Moorestown, NJ

More about me…

Address: 305 Harper Drive, Suite 3, Burlington County, New Jersey, Moorestown, NJ, 08057

Office Phone: (856) 252-1200 x 1224

Cell Phone: (609) 254-6687

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