My credit median credit score is 760. Shouldnt I be able to get the best rates available for a mortgage loan?

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When I tell a mortgage company about my credit score, it doesn’t seem to help any in getting the best rates available. How much does your credit score “HELP” you? I know that it can hurt your chances of getting a good rate on a home loan.

9 Comments
  1. Reply
    sports_chic_67
    January 21, 2011 at 11:32 pm

    The credit score is just one factor that mortgage companies look at in determining whether to loan you the money and on what terms. They will also take into consideration your employment and salary, your savings, your debt-to-income ratio, and how much you are planning on putting down on the house.

  2. Reply
    spifiman1
    January 21, 2011 at 11:57 pm

    I know people are tired of hearing this but “SCORE IS NOT EVERYTHING”.

    It depends on what makes up your score. Credit scores are made up of the following;

    1. Payment history 35%
    2. Time in bureau 15%
    3. Types of credit 10%
    4. New credit 10%
    5. Debt to credit ratio 30%

    As you can see 1,2&5 are the most important as far as score goes, but you must have the right mix of credit to get a great score and a great profile.

    You need 3 credit card accounts (revolving) and 2 cars, boats, furniture or personal accounts (installment) all with good long pay history’s and CC balances below 30% of your limit to get this.

    I look at credit all day and I see people with 700 scores that can not buy a car because their score is made up of 1-credit card with a $ 500.00 limit paid 15-times and a couple of student loans. Sure it produces a great score, but it doe’s not show the ability or the willingness to really pay anybody.

  3. Reply
    ron d
    January 22, 2011 at 12:30 am

    The par rate is about 6.65%. They may be quoting you the best rate.

    Free online quote: http://1stmdloans.com

  4. Reply
    matsonb
    January 22, 2011 at 12:46 am

    What other variables are involved with your loan? credit score is one of several major…
    Yes, 760 is a great score and will help you get the best rate for the program you are applying for. no money down, stated income, no ratio, investment property, high rise condo, non warrantable, etc….??

  5. Reply
    KKMom
    January 22, 2011 at 12:58 am

    The interest rate being offered is a function of not only the credit score, but also of your debt-to-income ratio (total monthly debt payments divided by monthly gross income) and the loan-to-value (ltv) ratio of the transaction (proposed mortgage amount divided by value of the house).

    If minimizing your monthly payment is your objective, there are many options still available to you, such as putting down a larger downpayment, buying down the interest rate, or asking the seller or developer to provide a credit of equity to finance a “temporary buydown”.

    Other options include extending the loan term, or taking out a loan that is interest only for part of its term, if you anticipate an increase of income in the future. If you know how long you plan to hold the property, you may also want to consider an adjustable rate mortgage that is fixed in the early years (for example, if your goal is to sell the property in 5 years, you may be able to obtain a lower rate by getting a mortgage that is fixed for 5 or 7 years and adjusts thereafter, since you would be planning to sell before the adjustment period anyway).

    Be careful — there are literally hundreds of products and programs out there, so make sure you ask and understand what annual and lifetime interest rate caps (maximums) exist for the loan program you choose, and what your actual payments would (or could) be throughout the life of the loan.

    These mortgage products are great when customized for an individual’s specific situation. So, while you shouldn’t be seduced by the refrain that a 30-year fixed is “the only way to go”, in this competitive mortgage environment, you must also be sure to read your paperwork and question your mortgage lender to get more than a cursory understanding of how a product you are less familiar with works.

    km_resource1@yahoo.com

  6. Reply
    sflrealtor
    January 22, 2011 at 12:58 am

    This credit score puts you in a great position to get a good interest rate but there are also other factors that the lender wants to take into account. For ex. stated income loans will have a greater rate than a full doc loan. 100% financing rate is higher than a loan with a good downpayment (5%, 10%, 20%, etc). So there are different variables that will determine your final interest rate. Also, interest rates are on the rise

  7. Reply
    Millionster.com
    January 22, 2011 at 1:32 am

    It’s really more than just the score they look at, but hey don’t fret having a nice score is good — it means you’re not a risk… still you need to establish yourself as financial responsible and as someone said the score alone isnt all that matters..

    ====
    Your Credit Score is calculated with the following breakdown:
    35% – Payment History
    30% – Credit to Debt Ratio
    15% – Credit History
    10% – New Credit
    10% – Credit Types in Use

    If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.

    I’ve got a lot of information on my blog about credit scores, and I get a lot of questions so feel free to check out any of my posts on millionster.com; I believe my articles here address many of your concerns but if they don’t and you still have any specific questions feel free to leave a comment and I’ll reply.

    How Can I Increase My Credit Score
    http://millionster.com/articles/debt/ask

    and

    10-Ways to Boost Your MyFico Score
    http://millionster.com/articles/debt/inc

    Also be sure to check out the promotional links I’ve listed here to help you get a better picture of your creditworthiness:

    MyFico’s Full Credit Report
    http://millionster.com/go/myfico

    Suze Orman’s Credit Report Repair Kit
    http://millionster.com/go/suzekit

    30-day Trial of Credit Score Tracker with Free MyFico Score
    http://millionster.com/go/fico30

  8. Reply
    Debbie B
    January 22, 2011 at 2:07 am

    The rate has only partial to do with the credit score. Many lenders out there post rates that exist only in a perfect scenario. Meaning, most people would not qualify for those rates. So what rate you think you should get may or may not be possible without buying down the rate with points to get a lower rate or going with a 15 year mortgage. Unfortunately, the rates are not what they were several years ago. And when people tell you they just got 5 1/2 % interest rate, they may not be telling you that their loan is adjustable and will increase in 2 years and there after, every six months.

    The banks are looking at the entire picture. They are looking at the purchase price in comparison to the down payment. They are also looking to see how much debt to have compaired to the income you have. The term of the mortgage can make your rate lower if you do a shorter loan.Do you have 2 years of employment history verified by W-2s or if you are stating your income because of self employment or another reason? After your down payment, will you have 2-3 months of a monthly mortgage payment left in the bank? The state you live in also makes a slight difference in your rate. These are all factors in the financing you are getting.

  9. Reply
    Dan
    January 22, 2011 at 2:55 am

    As far as rates go, yes.

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