How many times to you hear people ask “what rate did you get?”  Well the problem with the question is that the rate some lenders quote and the rate you get may be very different.  Why?The rate you get is based on your credit score and your credit score is based on a number of factors as indicated by the chart from Fair Isaac Corporation, myfico.com recently published in the T.Rowe Price Investor, June 2011 issue.

Source: Fair Isaac Corporation, myfico.com

 Interest rates as of May 9,2011. Sources: Fair Isaac Corporation (myfico.com), Informa Research Services"

So how much difference can it make?

Lots.  Lets look at a typical 30 year fixed mortgage for  $300,000.  The difference in dollars and cents is $294 per month, or $3,528 annually or $105,840 for the life of the mortgage.

It’s not just a mortgage rate that is driven by your credit score.

More and more companies are using your credit score to determine if you would be a “solid” employee.  Did you also know that your credit score determines the rate you will pay on your insurance?  How about that credit card, again the percentage you are quoted all goes back to your credit score.   So check your credit score by getting your free credit report from all three credit bureaus at annualcreditreport.com.

So when you are to buy or sell property in Tennessee then it is time to work with Diane O and Friends.

Our team of professionals  always do our homework and find you the best deal at the best rate. For more information about Diane O and Friends and our real estate services please fill out the online contact form or give us all call. Office: 615-371-1544 Diane Cell Phone: 615-406-2184 Mandy Cell Phone: 615-477-6959 Fax: 615-472-7931  

 

Benchmark Realty, 7107 Crossroads Blvd., Suite 102, Brentwood, TN  615-371-1544
Diane Osowiecki, license #290309 cell - 615-406-2184  email  diane@dianeo.us
Mandy Buchholz, license #309437 cell - 615-477-6959  email  mandybuchholztn@gmail
Bob Osowiecki, license #325031  cell - 615-406-2184  email me at bobointn@gmail.com

 

 
Post is included in group: Dedicated Bloggers
Post is included in group: Franklin Real Estate
Post is included in group: Tennessee
Post is included in group: "Whacked"!!!

2 Comments on Its All About Your Credit Score

JUL
22
2011
261,234 Points 2 Featured Posts Localism Sponsor Called Shot Master

Diane...very timely post; this morning on the Business channel this very topic was being discussed. They honed in on the point that :...the credit score you as an individual can receive may be very different from the score that is Sold to companies [ mortgage, lenders, banks etc] . It was mentioned that the 'free or subscription' score you can get [on your personal credit] may be found to be lacking when you sit at that mortgage lender table.

Folks need to do all those items that you delineate above; the most important one being to NOT add new credit purchases until after the mortgage has been awarded and the closing on the property.  Hopefully, those who need this info. will be reading your blog today.  Have a good weekend.
Barb  
7:38pm • #1
JUL
24
2011
240,391 Points 2 Featured Posts

Good information that so many don't know.  Now they have a place they can go to learn what affects their credit.
8:45am • #2

Login or register to leave a comment