Marianna's contact info follows:
Cherry Creek Properties
Marianna's question is: As a buyer you can get the best interest rate if you have a good credit score. What is the lowest credit score necessary to get the best interest rate?
Here's the answer: For a conventional loan, a borrower needs a 740 credit score to get the lowest interest rates. For every 20 points lower than 740, Fannie Mae charges a fee, which in turn raises the interest rate (or lowers the credit the lender gives the borrower). The fee that Fannie Mae charges also depends on the size of the down payment, so it is impossible to say exactly how much the interest rate will go up, just by knowing the credit score.
For government loans (FHA and VA loans), everyone with a score above 660 gets the lowest interest rate. If the borrower’s score is between 640 and 660, they will pay a higher rate, and if the score is below a 640, they will pay the highest rate.
It’s also important to note that for conventional loans, the mortgage insurance payment gets higher as the scores go down. For FHA loans, mortgage insurance does not depend on credit scores. For VA loans, there is no mortgage insurance.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
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By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.