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How Great Credits Help You Save
Having great credit allows you to qualify for prime rates. The differences when you qualify for these floor rates can SAVE you THOUSANDS OF DOLLARS AND in many times LOWER YOUR MORTGAGE TERM.
Example:
A 30 year $200,000 mortgage with an interest rate of 8.75% has a principal & interest payment of $1573.40 monthly. Now if you were to qualify for today's 15 year prime rate of 4.25%, a loan amount of $200,000 would have a principal & interest payment of $1504.56. This is $68.84 lower than your current payment and you will pay the loan off in half the time. And to look at it one step further, if you look at the total loan payout for the entire term of the loan, you would save $302,043.60 overall.
This is one reason why your credit is very important. Many homeowners are refinancing all of their debt with their mortgage. This helps in many ways, because you are getting rid of all of the high rate credit cards and consolidating it with your low home mortgage rate. This will create more available credit to you, which is one of the ways to improve your credit scores. Also this reduces chances of you hurting your credit rating by having late payments. When a few years have past and you have been making all of your mortgage payments on time, your credit rating should improve significantly and you should be able to qualify for prime rates.
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To learn about how to calculate your credit score, check out
> CREDIT SCORE <
For more mortgage industry related information, check out
> PERTINENT INFORMATION <
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