mortgage interest: How does your FICO score affect your interest rate
- 02/09/11 06:42 AM
Your apparent risk as a borrower may dramatically affect the interest rate you have to pay. To a lender, there are three key risk components: 1. Credit rating - this is your personal history demonstrating your responsibility. The higher your score, the more trustworthiness you have demonstrated and are expected to continue to demonstrate.2. LTV (loan-to-value) - this serves two purposes. First, by having a higher down payment (hence a lower LTV), the lender is more protected against market downturns. Second, the more skin in the game you have, the more likely you are to stick with it.3. Loan Amount - … (0 comments)
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Robert T. Boyer
San Diego Real Estate & Mortgage Loans, Ph.D. | VA...
Your apparent risk as a borrower may dramatically affect the interest rate you have to pay. To a lender, there are three key risk components:
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