How Much Is Your Credit Score Costing You?

Imagine spending a third of a million dollars more than someone else just because your credit
score wasn’t as high as theirs. Unfortunately, it happens all the time. Consumers feel like they get
backed into a corner to pay more because their credit score falls within a range that is not high
enough to qualify for the best loans. Here are some examples of what you would pay for a
$300,000 loan if you had the following scores:

Home Financing: A 30-Year Fixed with a loan principal amount of $300,000

FICO Score APR Rate Monthly Payment Interest Paid
720-850 6.513% $1899 $383,557
700-719 6.638% $1924 $392,464
675-699 7.175% $2031 $431,264
620-674 8.325% $2270 $517,069
560-619 10.839% $2821 $715,392
550-559 11.647% $3005 $781,644
Rates updated on July 1, 2007

This table shows that if your scores are below 620, and you improve those scores to above 720,
you could potentially SAVE $1,106.00 per month on your mortgage payment. That pencils out to
an extra $13,272 a year and a whopping $385,557 over the life of the loan. Wouldn’t you rather
have that money available for retirement, or improving your overall situation in the way of lifestyle,
education or investing? It’s a lot of money. It’s enough money to really change your life for the
better, and it’s worth fighting for. Even if your scores are low right now, you don’t have to give up
on your dream of homeownership.

There are many options that will allow you to get into a loan now, spend the next 6-12 months
working to improve your scores, and refinance for a better rate. Your mortgage professional can
assist you in this important process. Then, you can take proactive steps to improve your credit
scores to get the best loan possible. As you can see above, there are 385,557 good reasons to
start right now! This newsletter is aimed at showing you how you can do just that.

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