From one day to the next, hits and improvements on credit score brackets got much stricter. Hits for lower credit scores (anything below 740) are bracketed by increments of 20 points starting with a 620 FICO.
Based on today’s interest rates (which are really good compared to how rates have trended lately), I was shocked to quote a client with a FICO score of 695 a 30 Year Fixed interest rate of 6.75%, no points (APR 6.824%).
In this very same loan scenario, if her FICO was 740 and above, her interest rate quote would be 6.25%, no points (APR 6.321%). At a loan amount of $400,000, this is a significant monthly savings of $131.52.
This only serves as a reminder that excellent credit is vital in today’s lending market. Please let me know if you have any questions on your credit and your situation.
