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Ruth Ann Manison

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Prince Properties, LLC

Ruth Ann on Real Estate

I hope you enjoy my thoughts on real estate, market statistics, how-to's, and pieces I find interesting on buying, selling, remodeling, new construction, investing, and saving your resources.

High Credit Score = Low Mortgage Rate


July 2nd, 2010

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, including reliable resources for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full.

Info provided by Eric Silvas of Envoy Mortgage

Prince Properties, LLC
105 Hunters Lane Suite 108, Friendswood, TX 77546   Get Directions
Phone: (281) 482-5888
Fax: (866) 271-3628