Credit score and interest rate for a mortgage?

Question

Hi All!

My husband and I have a combined credit score of 708, and we're looking to buy a house within the near future. I was wondering about what the interest rate would be on our mortgage. Thanks for your help! :)

Answer 1

Well, you have a good credit score. Congatulations.

A combined credit score is taking all three scores for both of you, and then taking each of your middle scores, then taking the lower of the two middle scores.

There are some other factors to a Rate.

1) How much do you have for a down payment?
If you want 100% loan then you will normally pay a higher interest rate than if you have 5% down payment. You can expect to pay any where from a half to a quarter percent higher interest for 100% than for a 5% down loan.

2) where do you live?
Do to Bankruptcy rates and other factors such as state laws. Interest rate varies do to this factor based on the state you live in and what rates are out there for you.

3) What loan Program you use.
The loan program is just as important to your rate as every thing else. Each program will differ with rates of the program.

4) Term
Term is how long you are going to have the loan.

5) Loan Company.
Who helps you get your loan, we make money by selling you on a higher interest rate. You want a loan at "par value".

6) Servicer, Or who your Broker sells the loan to.
The servicer sets the rate sheet and the broker finds the loan that will work for you.

7) Type of home.
A manufactured home will cost more in rate. a condo will normally cost more in rate and a multi family home may be higher. I guess you are talking about a single family stick built home.

Rate change daily so keep your eyes on it.

I recommend going to a local Broker or Mortgage Banker, they will know local programs. And you can go in and talk with them face to face.

Also shop for the most honest broker that is the way to get the best deal. Decide up front how many points you will pay 1 to 2 is a standard. Some of these points are on the back end called SRP or Yield spread. If you don't get the answers you want out of your Broker or Banker, go some where else.

Don't have any one pull your credit until you decide on who you will be using it can affect your credit. Only have your credit re-pulled if you change Brokers and try not to do this, unless you feel you are getting taken.

Now on a 30 year loan with 5% down and you paying closing cost 6% is the going rate with the Broker making about a quarter to a half on the back. This is for the western states. For a single Family home.

Hope this help, Good luck.

Answer 2

There's no such thing as a combined credit score.

I assume you each have middle scores in the 708 range.

With a 0 down loan, you would be pretty close to the prime rates-- the low to mid 6% range.

Go get preapproved now. It doesn't hurt, doesn't cost, and it will tell you if you're on the right track. YOu can still wait to buy, or if there are certain requirements (some banks like to see 1-2 months of the mortgage payment sitting in the bank for a few months...... ) you can work on that in the mean time.

Answer 3

708 should be enough to get a good rate, possibly not the "top" rate offered, but certainly good enough to prime or slightly better.

There are still other factors like how much cash you can have at closing, and how strong your income is that may determine other your rate though.

I had a friend who ruined his credit in college but got a very high paying job and was able to get a nice mortgage just 3 years out of school because his income was high. Vice versa I have known people with good credit scores who simply are trying to borrow more then they canafford and end up paying higher rates

Answer 4

That will vary depending on you home loan provider. But that credit score should get you a reasonable interest rate

To find major lenders closest to you visit http://www.cheap-credit-cards.org/loans and enter your zipcode and visit your preferred lender

All the best