The Changes are In Effect
Fannie Mae and Freddie Mac announced recently that they would be changing mortgage rate pricing due to increased losses in the mortgage industry. That has now gone into effect with majority of the major lenders.
If you put less that 30% down on a home purchase and have a credit score below 680, you will have a higher mortgage rate. How does this play out? Here is an example:
$200,000 Purchase with 5% down (full income documentation)
Standard Rate: 680 score and above: 6.25
If score was 660: 6.50
640 score would be: 6.75
620, rate would be: 7.0
This is just an example, and not a rate “quote”, but as you can see, credit score can make close to a 1% difference. (in some cases, it could end up as more than 1%)
So what does this mean? Well, getting with the right lender for one makes even more sense. Someone that understands credit and scoring and can help you determine if you need to improve your credit, and if so… HOW. Be careful… if the person you are talking to does not know how credit scoring works, the simple advice they give may hurt your score!
Let us take a look and see where you stand. We are experts in credit and mortgages and know what needs to be done.
Now, more that ever, when time and money really matter, call the Carolina Mortgage Connection.
877-411-9327