Everyone knows that a higher credit score is better than a lower one. Some people know that a higher credit score means more favorable lending terms when they go to buy or lease a new car, rent an apartment, etc.
The same logic holds true when you apply for a mortgage. Lenders increase or decrease their rates based on risk. One of the largest factors that makes up a credit score is “history of on-time payments.” Basically if your score is high, you are more likely to pay on time.
This means it is less riskly for the lender to loan you money to buy a house. They will also be more inclinded to offer you a lower mortgage interest rate tham someone with a low credit score. The lower interest rate can translate into savings of hundreds and possibly thousands of dollars each year. Over the life of the loan (normally 30 years) this could translate into tens and possibly hundreds of thousands of dollars in savings.
If you currently have a higher credit score than you did when you purchased your home, you should look into refinancing to take advantage of your higher credit score, and today’s low rates.
For more info on how your credit score impacts your mortgage, visit: http://pro.truliablog.com/buyers/better-mortgage-rates-start-with-better-fico-scores/?ecampaign=anews&eurl=pro.truliablog.com%2Fbuyers%2Fbetter-mortgage-rates-start-with-better-fico-scores
Feel free to contact me anytime with any questions via www.ToddTurcotte.com