Whether buying a car or home in Roseville, Carmichael, El Dorado or Loomis, your credit score will determine how much your total expense will be, unless paying cash.
While not an exact science, and lenders do have some flexibility, still the general rule is the higher the credit score, the lower the interest rate, and the lower the monthly payment. Interest rates are not yet to this level but the example is still accurate. The following chart illustrates this concept for a $225,000, 30-year, and fixed-rate loan.
Credit Scores Affect the Interest Rates and Monthly Payments
FICO® score APR Monthly payment
760-850 6.146% $1,370
700-759 6.368% $1,403
660-699 6.652% $1,445
620-659 7.462% $1,567
580-619 9.451% $1,884
500-579 10.310% $2,026
*Estimated average over the life of the loan. Payments may vary.
Although a variety of credit-scoring systems are available for use, the two most frequently used are FICO® and VantageScoreSM.
Credit Repair firms can and do have the ability to help bring your credit score up by cleaning up past reporting issues and misunderstandings. The money you pay them may pay you rich dividends in the form of a lower APR on your next loan.
Check out your credit score and history at one of these sources.
Three Major Credit Bureaus
Experian® - www.experian.com
TransUnion™ - www.transunion.com
Equifax® - www.equifax.com
A credit report includes four categories of data that have been collected and reported to the credit bureaus. They are (1) personal information, (2) credit information, (3) public record information, and (4) inquiries. According to the Equal Credit Opportunity Act (ECOA), the credit report does not include certain factors such as gender, income, race, religion, marital status, and national origin.
I help clients Sell and Purchase Real Estate for their primary residence and/or for investment purposes in Sacramento, Placer, El Dorado and Nevada Counties. I have access to good credit repair agencies and loan brokers who help save my clients time and money in the lender aspect of their purchases. I’d love to help you in any way possible. Give me a call/text or email.
Kelly Groth, Broker Associate
Lifetime Masters Club Realtor
Keller Williams Realty
Kelly@grothhomes.com
916-316-4000 call/text
www.grothhomes.com
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