It follows then, HIGHER CREDIT SCORE, LESSER INTEREST.
For example, one borrower scoring in the low 600’s pays an interest rate of 6.5% on his 5 YEAR mortgage. His friend scoring in the low 700’s gets the same mortgage at 5.5%. The higher credit score will pay over $10,500 less interest on his $200,000 mortgage over just the next 5 years AND pay off the mortgage over 4 years sooner.
Thinking of applying for a mortgage? Before you do, ask your mortgage broker to coach you on how to maximize your credit score. For more background on Credit Scoring check out these links: