Comments on: Mortgage Payments by Credit Score

By: Curious Cat: Jumbo v. Regular Fixed Mortgage Rates

Curious Cat: Jumbo v. Regular Fixed Mortgage Rates — Wed, 05 Nov 2008 03:14:03 +0000

Since February the premium for jumbo loans has decreased to 88 basis points (from 108) for all credit scores above 620..

By: Curious Cat: Mortgage Rates Rising

Curious Cat: Mortgage Rates Rising — Mon, 17 Mar 2008 01:04:01 +0000

“But now that person might have to pay a half percentage point more. With today’s rates, that translates into 6.75% for a 30-year fixed-rate mortgage instead of 6.25%…”

By: Curious Cat: Jumbo and Regular Mortagage Rates By Credit Score

Curious Cat: Jumbo and Regular Mortagage Rates By Credit Score — Mon, 18 Feb 2008 23:51:26 +0000

In the last 6 months the premium for jumbo loans has increased from a very small premium to over 100 basis points for high credit scores…

By: Jack Payne

Jack Payne — Mon, 20 Aug 2007 21:31:26 +0000

I stumbled upon a startling figure. survey says: 45% of those carrying house mortgages do not know which type they are carrying–adustable or fixed rate.

This is staggering. Think of it, nearly half have no idea of what level of risk they are taking.

I write on con games, schemes, and scams constantly. Is it any wonder the con men thrive?

By: curiouscat

curiouscat — Sun, 19 Aug 2007 23:43:27 +0000

It is true other factors also effect the interest rate (and whether you can get a loan at all). However, this is a chart showing the case if all other factors remain the same. That is the standard way to show effects of one variable.

I strongly disagree that the table has more entertainment value than educational value. Most people do not understand the consequences of poor credit histories. Granted you do and you even understand more but do you know how many people don’t even know if the mortgage then have is a adjustable rate mortgage or a fixed rate mortgage? We need more obvious explanations like this table to help people become financially literate.

The table clearly shows for the same house you can be paying more than $1,000 a month more due to poor credit history. That is important personal finance knowledge that many people lack. They have an idea good credit is worth something but they don’t know it might mean more than $1,000/month in their pocket.

By: Colin

Colin — Sun, 19 Aug 2007 23:09:47 +0000

There are a number of other factors that determine interest rates, so you really can’t sum it up with one single table. Some programs don’t even hit you for credit score within a certain range, while others only differ by about .125% in pricing. Additionally, property type, transaction type, doc type, customer relationship, and many other issues factor in.

This looks like a case of myfico trying to sell their credit monitoring software by promoting the importance of credit scoring. This table has more entertainment value than anything else.