Understanding YOUR credit Score!
All About Credit Scores Understanding how credit scores impact mortgage rates and terms is key for homebuyers in Florida . Let's explore how different credit score ranges, specifically mid-600s , lower 700s, and higher 700s, affect mortgage interest rates and down payments. Impact of Different Credit Scores on Mortgages Credit Scores in the Mid-600s : Interest Rates : Homebuyers with credit scores in the mid-600s often face higher interest rates. Lenders view this score range as a moderate risk, which leads to less favorable borrowing terms. Down Payment : Buyers might need a larger down payment to counterbalance the risk from the lender's perspective. For instance, a homebuyer with a 650 credit score might be required to put down 10-20% of the home’s value to secure a mortgage. Example : If the home price is $300,000, a 20% down payment would be $60,000, which might be significantly higher compared to a buyer with a higher credit score. Credit Scores in the Lower 700s : Inte...