What kind of interest rate increase is most likley with a forclosure on your credit report?

Question

Is there a max or a reasonable rate that could be achieved? With a current FICO of 670 what is the worst it could go to and what would be the increase?

This is for purchasing another home in the future.
How soon can you consider looking for a home?

Answer 1

2 years FHA, 4 years conforming, 1 year sub-prime. Your score is not the problem it is the foreclosure that all underwriters will look at. In this market things are changing daily. Stay current on all bills and pay by check your current rent never use money orders or pay by cash to a private person on a home. All lenders in the future will want proof of timely payments on your rents. They will accept receipts as proof. The check has the date issued as well as the date cashed on the back.
I am a mortgage broker in TN and KY

Answer 2

Forclosure stays on your credit report 7-10 years depending on which type you file. During this time most creditors won't want to touch you. You will seem like too much of a risk. If you do end up finding someone to finance you their rates could be higher than the going rates. As for the exact rate, it varies on a daily basis. You have to figure out who your probable lender would be first then find out how much above average they charge.

Answer 3

Your score will most likely drop 100-150 points so look at it from there. It is not the credit interest rate, but the ability to get it

Answer 4

You can see at least a 10% increase on your interest rates. If at all avoidable, I would not foreclose. It takes months to ruin your credit and 7-10 yrs. to repair it.

Answer 5

670 isn't all that bad, it all depends on how greedy the mortgage lender wants to take advantage of you instead
of actually making the loan in a way you could actually afford

Answer 6

24-months for F.H.A.

Rate will depend on lender.