Mortgage Credit Scores Still Mystery to Most

loan mortgage Nevada refinanceMortgage Credit Scores Still Mystery to Most

After reading the article below I realized that, although the media is publicizing the Doom and Gloom of the Mortgage Industry, they are not giving equal time to the impact it is having on the average US homeowner or potential homeowner.  The majority of people still think that they can get the best rate on a loan without having a strong credit score.  I have a dedicated CREDIT CENTER on my website http://www.steak-dinner.com/, to help educate consumers on credit and how to get their credit in shape to purchase a Nevada home or refinance their current mortgage.

Credit Scores Still Mystery to Most (Huntsville Times (AL) (08/02/07); Accardi, Marian)
A new survey from the Consumer Federation of America and Washington Mutual reveals that only 24 percent of 1,000 adults knew that 700 is the lowest credit score likely to qualify for a low-cost mortgage. Only 29 percent understood what a credit score means; however, that was up from only 27 percent in the 2005 survey. Stephen Brobeck, executive director of the federation, says the increase in the percentage of consumers who had obtained their credit scores--59 percent, versus 54 percent in the last survey--also was a good sign. It is worthwhile for consumers with lower scores to work on improving them, considering that Fair Isaac Corp. estimates that raising a credit score from the 580-619 range to 660-699 could save a borrower $5,148 in annual interest expenses on a $300,000 loan carrying a fixed rate over 30 years.

Your mortgage partner for life,  

Rey "Steak Dinner" Gallegos
Senior Loan Officer
Five Star Mortgage
Website: http://www.steak-dinner.com/
Your complete community mortgage broker
Approved in NV, CA, UT, NM, AK, and FL
Proud member National Association of Mortgage Brokers
 
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5 Comments on Mortgage Credit Scores Still Mystery to Most

The really sad thing is as I wrote yesterday is that for some the score is also a bogus score

08/02/2007 12:19 PM by Joe Adams (Major Mortgage USA/Branch Manager)

Hi Rey -- Have you heard any thing new on th enew credit scoring system that is supposed to go into effect this fall?  Thanks  B

08/02/2007 12:55 PM by Bruce Bourgault, Vice President, Mpro (Central Pacific Home Loans)

Of course, the media is wrong, or the survey is wrong.  700 is not the lowest score that will "likely" qualify for a low-cost mortgage.  If they had asked me, I wouldn't have responded with that answer!

You are correct though, Rey - the credit system is a mystery to most people.

08/02/2007 01:25 PM by Benchmark Mortgage of Louisiana

Rey we all need to educate the consumers about credit scores and what impact it has on their mortgage. But I don't agree with the 700 figure.

08/03/2007 01:42 AM by Albuquerque Real Estate | Ashley Drake Gephart (Keller Williams Realty)

Joe: There are alot of errors on credit reports!

Bruce: Yes I have heard of the new system BUT it oesn't mean that the mortgage banks will adopt the use of it right away.

Gareth: You are correct there are some good programs out there for lower scores. 

Ashley: AGREED!  Consumer education for credit in general needs to be a focus.  Our children have no clue what credit it unless we teach them.  Ou school systems teach Home Economics, WELL, if thats not Home Economics I don't know what is.  It should be focused on often and early!

08/03/2007 01:48 PM by Rey Gallegos Home Loan Consultant Las Vegas, NV (A Mortgage Bank)

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Loan Officer: Rey Gallegos Home Loan Consultant Las Vegas, NV (A Mortgage Bank)
Rey Gallegos Home Loan Consultant Las Vegas, NV
Las Vegas, NV
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