TODAY’S RATES ARE AS FOLLOWS
30 YR FIXED @ 5.625%
30 YR INT ONLY @ 6.625%
30 YR BOND PROGRAM @ 6.55%
30 YR FHA @ 5.75%
Did you know…starting in 2008 Fannie Mae and Freddie Mac have started to implement loan level pricing adjustments based solely on FICO scores. Here is the following breakdown if your credit scores fall into these ranges:
For all loans with a Loan-to-Value greater then 70%:
FICO Scores below 620 add 2% to the rate
FICO Scores between 620 – 639 add 1.75% to the rate
FICO Scores between 640 – 659 add 1.25% to the rate
FICO Scores between 660 – 679 add .75% to the rate
To give you an idea of how this affects payments…on a $200,000 loan a borrower with a FICO score of 685 with a rate of 5.625% is paying $1,151.31 a month principle and interest. If that same borrower has a FICO score of 620 and the rate jumps 1.75% higher (7.375%) and now they are paying $1,381.35 a month for the same house! That is over $230.04 a month higher and more than $82,800 over the life of the loan! For information on how to improve your FICO score, click the highlighted link.
-Brett Collin, Mortgage Lender 602-330-5521
