Los Angeles Credit Scores Influence the Interest Rate of Your Mortgage
The interest rate on your Los Angeles mortgage can result in your having to pay thousands of extra dollars before your loan is paid off. The thing that impacts this the most will be your credit score. Obviously, if you have a high credit score, you can expect to pay a lower interest rate on your mortgage. When it comes to a larger loan such as your mortgage in Los Angeles, just a slight percentage increase could result in your having to pay a lot more money over the course of the loan.
A good credit score can help you to get a better Los Angeles mortgage interest rate, but it can be the difference between whether or not you can get a loan at all. The issuance of credit is not guaranteed and creditors are not willing to loan money if your credit score falls below a certain point. This number is usually somewhere around the 620 mark. If you have a score that is higher than this, then you have a better chance of getting your mortgage loan approved. If it is lower, then your odds are extremely low. However, creditors have not always been this stingy when it comes to mortgage loans. Things have drastically changed within the past few years.
A credit score can go all the way up to 850 on the standard FICO scale. If you have a credit score of 740 or higher, you should be able to get some of the best interest rates for your mortgage. When it comes to most lenders, there is only about a percentage point and a half between the interest rates on the loans for the lowest credit scores and the highest ones.
The monthly mortgage payment for the person who has a low credit score can be as much as $300 more than the person who has a good credit rating. When you add that up over the course of thirty years, the person with a low credit score will end up paying $100k more on his loan than the person who has good credit. Think about the ramifications of this difference. This is money that you could have put into your retirement fund instead. For more information on getting the best mortgage possible call an expert mortgage broker Los Angeles at Yousif Mortgage Services at: (310) 252-7268.