CORNER CORNER

Continued from the previous page:

A higher credit score indicates lower risk, making it more likely for your mortgage application to be approved A lower credit score, on the other hand, may result in a higher level of scrutiny or even the denial of your mortgage application

2 Interest Rate - Your credit score can influence the interest rate you're offered on your mortgage A higher credit score generally translates to a lower interest rate, which can save you money over the life of the loan Conversely, a lower credit score may lead to a higher interest rate, increasing the cost of borrowing

3 Loan Terms - In addition to the interest rate, your credit score can affect other loan terms, such as the down payment amount required, the loan-to-value ratio, and the type of mortgage available to you A strong credit score may enable you to qualify for more favorable loan terms, while a lower credit score may limit your options or require more stringent conditions

The cost of mortgage insurance can vary based on your credit score If you have mortgage insurance and you have a lower credit score, that will result in higher premiums

*With a credit score between 500-579 you may still qualify for an FHA loan if you can put at least 10% down.

**No minimum credit score established by either the USDA or VA, but lenders are allowed to set their own requirements.

If you’re a first-time home buyer, you may be surprised, but you could get approved for a mortgage loan with a credit score below 600.

& A

Question: How do I read your weekly mortgage market update chart?

Answer:

Many readers reach out on how to read the chart and t we know more about credit scores, is the perfect time t There are many loan programs, we’ll get to that in futur but this week we’ll explain the credit chart. Dark blue is when the loan amount is less than 80% LTV the amount of the mortgage compared with the value o It is expressed as a percentage), and light blue is when the loan amount is more than 80% LTV Each column is for a different FICO, the better the credit score is, the better the rate will be

Feel free to share your feedback or ask your mortgage questions, and we’ll answer them all IyH. One question on this week’s topic will be featured in next week's column Email mortgagecorner@themintcapital com DY FISCH fficer NMLS #2060303

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-683-1708 ch@themintcapital.com